Europe 'panicking' over India's pharmaceutical export curbs - industry group

Abbott India

04/03/2020 08:21

By Neha Dasgupta
    NEW DELHI, March 4 (Reuters) - India's top pharmaceuticals
export group said the government's curbs on some drug exports
amid the spreading coronavirus outbreak has caused panic in
Europe and will "severely impact" businesses in the sector.
    India, the world's main supplier of generic drugs, has
restricted the export of 26 active pharmaceutical ingredients
(APIs) and the medicines made from them, in a move seen aimed at
tackling possible domestic shortages of medicine during the
outbreak.  urn:newsml:reuters.com:*:nL4N2AW2NG
    On Wednesday, Dinesh Dua, chairman of the Pharmaceuticals
Export Promotion Council of India (Pharmexcil), told Reuters
that some of the restricted APIs and medicines were widely
exported to Europe and the United States.
    "I am getting a huge number of calls from Europe because it
is very sizeably dependent on Indian formulations and we control
almost 26% of the European formulations in the generic space. So
they are panicking," Dua said.
    India's list of restricted medicines account for 10% of its
total pharmaceutical exports and includes several antibiotics,
as well as Paracetamol, a common pain reliever also sold as
acetaminophen.
    The Food and Drug Administration in the United States, where
Indian imports accounted for 24% of medicines in 2018, said on
Tuesday it was working to determine how the restrictions will
affect U.S. supplies.
    The restrictions could hurt India's image as a pharmacy to
the world and would impact shipments which were already lined up
for export at warehouses and ports, Pharmexcil argued in a
letter to India's Directorate General of Foreign Trade (DGFT),
which was reviewed by Reuters.
    The DGFT did not respond to a request for comment.
    "The exporters not only suffer the monetary losses but also
their credibility and reputation in international market is at
stake," said the letter, which urged the government to allow
exports of drugs manufactured before the restrictions kicked in.
    "(This) would severely impact our members."
    Dua told Reuters there were $10 million worth of drugs
currently at Indian ports or close to being readied for export.
    Pharmexcil counts dozens of pharmaceutical firms such as
Pfizer Ltd  PFIZ.NS  and Abbott  ABOT.NS  among its members. The
council falls under the federal commerce ministry.    
    Novartis AG  NOVN.S  said on Wednesday it was monitoring the
changes in Indian export policy and will "adapt measures as the
situation evolves", though the company does not anticipate a
supply chain disruption as of now.  urn:newsml:reuters.com:*:nFWN2AW0WA
    Indian drugmakers rely on China, the source of the virus
outbreak, for almost 70% of the APIs for their medicines.
Industry experts say they are likely to face shortages if the
coronavirus epidemic drags on.    
    India - which has so far confirmed 28 cases of the
coronavirus, including 16 Italians - has urged calm and said
there were enough stocks to manufacture formulations for two to
three months.

 (Reporting by Neha Dasgupta; Editing by Aditya Kalra and Kim
Coghill)
 ((neha.dasgupta@tr.com; +91-11-49548058; Reuters Messaging:
neha.dasgupta.thomsonreuters.com@reuters.net (Twitter: @neha_5))