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