To ensure India reduces its dependency on China when it comes to Active Pharmaceutical Ingredients (APIs), Indian drug makers are now trying to either manufacture them in-house or source them from reliable local manufacturers.
APIs are the chemical compounds that are used to make medicinal drugs. They give the drugs the intended effects.
China supplied half of India’s API needs in 2019, reports Economic Times.
India’s place as the world’s pharmacy is now uncontested after the outbreak of the COVID-19 pandemic. India has showcased its ability to manufacture vaccines which have been supplied globally.
India has the world’s largest production capacities for both generic drugs and vaccines. However, for a while, Indian drug makers have come to realise that the time has come to end the dependency on the supply of raw materials from China.
After the Doklam clash between Indian and Chinese troops in eastern Ladakh last year and the disruption to supplies from China due to the COVID-19 pandemic, leading Indian drug makers like Cipla, Cadila Healthcare and Sun Pharmaceuticals have decided to reduce their dependency on China for raw materials.
“Because of the anti-China sentiment… most of the companies are working towards de-risking themselves in terms of making it clear that their supply chain linkages with China are limited,” Gaurav Suchak, supply head of Cadila, was quoted as saying in the BioAsia conference.
“For the critical API molecules, the idea is to go for a backward integration where you are in control of that pie which is going to make the most impact on your business, and also to make sure that the entire value chain is secure,” Suchak added.
Suchak further said that most of the pharmaceutical companies in India are also looking for reliable local vendors who can promise consistency and competitive prices.
Cipla has launched an “API re-imagination” programme aimed to expand its manufacturing capabilities and avail incentives under the government’s PLI scheme for the sector.
Click here to subscribe to The Commune on Telegram and get the best stories of the day delivered to you personally.