Companies such as Cadila Healthcare, Alembic Pharmaceuticals, and Torrent Pharmaceuticals have reported lower sales in the US market in the first quarter ending June 30, 2021. These big pharma also reported moderate sales in the previous quarter from January to March.
Vadodara-based Alembic Pharma's US revenue fell 38% to Rs 369 crore in the first quarter of 2021-22 from Rs 596 crore in the same period last fiscal year. Torrent Pharma's US revenue fell 29% to Rs 266 crore in Q1 FY22 from Rs 373 crore in Q1 FY21. Cadila Healthcare, popularly known as Zydus Cadila, saw its US sales drop 11% to Rs 1,451 million in the April-June quarter from Rs 1,623 million in the same quarter last fiscal year. “Generally, prices were soft in all product categories. The weakness in prices was due to stiff competition that followed less disruption in supply, which is part of the history of American generics, ”said RS Baheti, CFO and CFO of Alembic Pharma.
Regarding Torrent Pharma, its spokesperson stated that the decline in sales in the US was primarily due to a lack of new product approvals pending re-inspection of USFDA (Food and Drug Administration) manufacturing facilities. USA). In addition, the core business was affected by high single-digit price erosion and the disruption of Sartan's portfolio, the spokesperson said.
“We continue to submit double-digit ANDA (New Drug Abbreviated Application), which will help to have double-digit launches once we see the USFDA clear our facilities,” the spokesperson added.
According to industry players, competition in the US intensified with the approval of more and more generic products. New players are aggressively pricing their products, which is putting pressure on existing players to cut prices. Apart from this, the reduction in prescription of drugs in the US market also contributed to the drop in revenues. However, the loss of revenue for pharmaceutical companies in the United States was offset by strong growth in domestic market sales, industry players said.
