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Prices Of Antibiotics May Flare Up By 50%

Reference: Khomba Singh Economic Times 08/03/2010

The commerce Ministry of India has proposed anti-dumping measures of $ 16 to 18 on 6APA and $ 3.3 to 3.8 per billions of unit for Penicillin G as provisional duty for imports from Mexico and China.

Private manufacturers such as Alembic and SPIC and State owned HAL have supported the proposal of anti-dumping as these companies had stopped production or have crimped their capacity due to dumping by Chinese.

Governments aim is to protect the business of local drug makers, but drug companies feel that this could lead to shortage of raw materials and increase in prices of common Antibiotics like Amoxicillin, Cephalexin and Amoxicillin & Clavulanic acid by almost 30 to 50%, as they have to pass on the hike to consumers or they will have to prune production as making of antibiotics would become unviable for them.

The Bulk drug manufacturers association has argued that the duty would force them to shut down as formulation companies as it would be cheaper to import the finished products instead of buying bulk drugs. BDMA estimates say the two private companies can barely meet 5% of industry's demand.
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