Published on April 21, 2014
With the starting of new financial year, all the major industries are busy in forecasting their profit margins and estimating the growth of the company in the year 2015. The industry expects the path to be more smooth and soft for this term, after facing a tough year round the clock with issues related to pricing, trade and violation of USFDA norms. Leading directors of companies like Cadila Healthcare, Intas etc. all have got the high expectations for the year 2015. They believe that industry will regain its momentum after June-July and growth will flourish in the two digits.
Lower growth in the FY14 was majorly because of the dire impact of Drug Price Control Order 2013 and consequent trade related issues. In this year companies will proceed for the growth by increasing the prices of drugs. According to Centrum, a broking firm, the prices for controlled drugs will be increased by 6.3% and of the other products by 10%. This substantial hike will pull the growth to 12-14p%.
In a recent scenario the non-profit organization of USA has affirmed that Indian patent and pharma laws falls within the bounds of what is allowed under the rules of the World Trade Organization (WTO).
