Pharma cos US revenues are still declining

PSM News /

Ahmedabad, August 14, 2021:

 

A major Gujarat-based pharmaceutical company has seen significant growth in domestic sales, but sales from the US market continue to decline, primarily due to lower prices for existing products.

Companies such as Cadila Healthcare, Alembic Pharmaceuticals and Torrent Pharmaceuticals reported a decline in sales from the US market in the first quarter, which ended June 30, 2021.

 

Vadodara-based Allenbic Pharma’s US sales fell 38% from Rs 59.6 billion in the first quarter of 2021-22 to Rs 36.9 billion in the year-ago quarter. Torrent Pharma’s revenue from the United States decreased by 29% from Rs 37.3 billion in the first quarter of 2013 to Rs 26.6 billion in the first quarter of 2010. Cadila Healthcare, commonly known as Zydus Cadila, posted sales of Rs 1,451 in the US for the April-June quarter, down 11% from Rs 1,623 in the year-ago quarter. “Prices were generally weak across product categories. Price softening was due to fierce competition after supply interruptions were minimized, which is part of the story of generics in the United States.” Said RS Baheti, Financial Officer and CFO of Alembic Pharma.

 

Regarding Torrent Pharma, he said the decline in U.S. sales was primarily due to the failure to obtain approval for new products while waiting for the USFDA to re-examine the manufacturing facility. .. In addition, a single-digit high and the abolition of Sartan’s portfolio affected the base business, a spokesman said.

 

“We will continue to submit a double-digit ANDA (New Drug Application), which will support the double-digit launch after the USFDA clears the facility,” a spokeswoman added.

 

According to industry insiders, competition in the United States is intensifying and more and more generic products are approved. New players are aggressively pricing their products, putting pressure on existing players to lower prices. Separately, lower drug prescriptions in the US market also contributed to lower earnings. However, the loss of US revenue from pharmaceutical companies was offset by strong growth in sales from the domestic market, industry insiders said. ET HealthWorld