Drug shortages in the US are at an all-time high, and price erosion has stabilised, which could benefit Indian pharmaceutical (pharma) companies with a US focus, according to analysts.
Nuvama Research analysts said that US price erosion seems to have normalised to its old levels of 6-8 per cent and volumes are picking up with easing of inventory.
Similarly, an ICICIdirect analyst noted: “Price erosion intensity has now moderated to a single digit and is expected to tone down a bit as Indian companies will tend to benefit from the exit of a few bankrupt generic companies in the US and improved momentum in exclusive products.”
