Bombay: The largest group of drugs in India, Sun Pharmaceutical Industries Ltd. said Friday that its sales in the United States could fall this year due to pressure on drug prices, indicating harsh market conditions in the United States By manufacturers of generic drugs.
“The US generic industry is facing a constantly changing dynamic market, (and) increasing competitive intensity and customer consolidation put pressure on prices,” Sun CEO Dilip Shanghvi said during A call with analysts after the company announced a decline in expected fourth-quarter earnings.
“We can even have a single-digit drop in consolidated sales for the year 2018 compared to 2017.”
The world’s fifth-largest generic drug maker is the latest to offer a bleak United States forecast, echoing recent comments from rival Laboratories Ltd Dr Reddy and Lupine Ltd
The pharmaceutical industry of nearly 16 billion dollars in India faces an uncertain future in its largest export market, the United States.
A wave of consolidation among American drug dealers hit the bargaining power of pharmaceutical companies. There is also uncertainty about the major changes in US President Donald Trump’s health policy.
“For many things, there is a new normality set,” Sunghan Shanghvi said in response to analysts’ questions about how the company plans to meet increasing challenges. “We are clearly at the level of profitability we were 12 years … you have to get better results.”
The sun plan, like other major Indian product manufacturers, is creating niche products where there is less competition such as ophthalmology and dermatology.
Sun has worked on problem-solving at his Halol plant in western India, where the US Food and Drug Administration expressed concern about quality control violations.
Director-General Shanghvi said the company was still facing these problems while waiting for another inspection, of which it was not visible.
It also partners with the American company Merck & Co Inc to develop Tildrakizumab, a new psoriasis drug Shanghvi said next year.
Sun profits for the quarter ended in March lost 14% to 12.24 billion rupees (189.94 billion US dollars), less than 15 billion rupees 21 analysts polled by Thomson Reuters estimate on average.
Sales in India’s second largest market rose 10 percent but the company will face a singular success stemming from the tax reform that the national government plans to implement in July, Shanghvi said.