Sun Pharma says slump in US generic prices won’t last long
Mumbai: The chairman of Sun Pharmaceutical Industries Ltd, India’s largest drugmaker, said he doesn’t expect the slump in US generic prices that’s roiling the global industry to last.
Pressure on prices will eventually lead to restrictions on supply that will hurt the health-care industry, Sun Pharma chairman Israel Makov said in an interview with BloombergQuint at the World Economic Forum in Davos, Switzerland. “I see this as a temporary cycle.”
A consolidation among pharmacies and intensifying competition have sent prices of generic drugs, cheaper copies of off-patent medicines, in the US into a tailspin and has left the global industry scrambling to adjust. Sun Pharma has warned that revenue this year may come in lower than last, and Teva Pharmaceutical Industries Ltd, the world’s largest generic-drug maker, has said it would eliminate 25% of its workforce and sell assets.
Makov, who was formerly the chief executive officer of Teva, said the current turmoil in the generic industry could be an opportunity for companies from India, already the world’s largest exporter of copycat medicines, to increase its share of the market globally. Bloomberg