SME Tracker: Bulk-drug firms' prospects boosted by the focus on niche molecules

CRISIL RESEARCH expects the prospects of small and medium enterprises (SMEs) making bulk drugs to improve in the near term, because of their sharp focus on developing niche and complex molecules. These are difficult to manufacture but command a higher premium.

Strong demand for formulations and increasing health insurance penetration would also support growth.

Developments in China have been impacting bulk-drugs players in India. Recently,quality issues with Chinese active pharmaceutical ingredients in hypertension drugs had prompted a global recall.

That prompted multinationals to look at alternative sources such as India. Further, the recent clampdown on polluting industries in China had led to a shutdown of several bulk-drug factories. Read More