Pharmaceuticals - SECTOR UPDATE - Sharekhan

Drug shortage surges in US; positive implications for Indian players

Drug shortage surges in the US

The US market is witnessing an increased shortage of new drugs, mainly due to manufacturing delays and higher than expected demand in some segments. We observe that a few Indian players, which have approvals for similar drugs, may find this as an opportunity to improve supplies to the US market. Most of the shortages are being witnessed in sterile and injectible segments where the capacity is limited and stringent manufacturing norms make it difficult for them to be replicated by others.

Positive implications for Indian players

We find Strides Arcolab (through the Sagent Strides joint venture [JV] and Onco Therapies), Sun Pharmaceutical Industries (Sun Pharma; through its US subsidiary) and Claris Life Sciences as being well placed to capitalise on the opportunity arising out of shortage of injectible and sterile products in the USA.

Source : Equity Bulls

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