Indian pharma industry set to witness changes in near futureStrengthening of regulatory norms coupled with a changing market scenario have posed a series of challenges

The Indian pharmaceutical is set to witness significant changes in near future. Strengthening of regulatory norms coupled with a changing market scenario have posed a series of challenges for domestic as well as multinational companies.

While on one hand, the industry is facing stricter checks on manufacturing and quality practices in the domestic as well as international markets such as the US and UK, on the other hand its margins have come under pressure due to government’s populist price regulation.

The latest Standing Committee report seeking ban on foreign investment is also expected to impact the industry.

Experts say all such moves are likely to affect the revenues of drug makers, which in turn will be reflected on their valuations in medium to long term.

While domestic companies attracted steep valuations a few years ago, in 2008-2010, resulting in big ticket acquisitions, the same has come down in past two-three years. Besides the government being stiff in approving deals in the sector, multinational companies have also become a little scepticle in entering the market, primarily because of its stringent regulatory norms with respect to prices, clinical trials as well as patented and branded drugs.