Natco shifts focus from US to India amidst pricing pressure and competition in former market | Moneycontrol.com

Natco’s move comes at a time when Indian drug makers, even mid-sized ones have expanded their R&D budgets and capital expenditure aimed at generics filings in US, the world’s largest and high margin market for generic drugs.

It costs around USD 0.5 to 1 million for each ANDA filing. The cost of filing is in addition to the cost incurred on building and running a US FDA compliant facility.

Things have started to get complicated in US – as the market gets increasingly crowded by more and more generic players competing to gain market share and the consolidation of retail and distribution channels driving down the prices significantly. Even the heightened regulatory scrutiny by US FDA is adding to the uncertainty.

“Today everybody has money, if you take top 25 companies they all have great (R&D) budgets and there isn’t much difference in terms of technical capabilities,” Nannapaneni said.

“When you have more than 5 players the pricing pressure is so much and because of the (channel) consolidation the hold that they have on you is just ridiculous.”

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Natco shifts focus from US to India amidst pricing pressure and competition in former market – Moneycontrol.com.