After opening the day on a positive note, the Indian share markets have continued the momentum and are currently trading in green. Sectoral indices are trading mixed, with stocks in the IT sector and the telecom sector witnessing maximum buying interest, while stocks in the consumer durables sector are leading the losses.
The BSE Sensex is trading up 105 points (up 0.3%) and the NSE Nifty is trading up 30 points (up 0.3%). Meanwhile, the BSE Mid Cap index is trading up by 1.5%, while the BSE Small Cap index is trading up by 1.3%. The rupee is trading at 64.39 to the US$.
In news from stocks in the pharma sector. Dr. Reddy’s share price is among the most active stocks today as the company received an establishment inspection report (EIR) from the US Food and Drug Administration (USFDA).
The company received establishment inspection report (EIR) for its custom pharmaceutical services facility at Miyapur, Hyderabad, Telangana.
As per USFDA, after the completion of an inspection of a facility, an EIR is issued to a company detailing inspection findings.
Dr. Reddy’s had, on September 21, informed the USFDA had completed audit of the Miyapur facility with zero observations.
Indian pharma companies catering to the US markets are breathing a sigh of relief. After being adversely affected by import bans and the suspension of new drug approvals from manufacturing facilities in the past three years, there has been a sharp pick-up in new drug approvals in FY17. With an aim to lower the overall healthcare costs in the country, the US Food and Drug Administration (FDA) approved a record 763 generic drugs for the financial year ending 30th September. As per Mint Analysis, Indian pharma companies received 295 approvals accounting for 40% of the overall approvals during the year.
Generic Drug Approvals Hit the Roof
Even the total filings of abbreviated new drug applications (ANDAs) for generic drugs rose to 1,292 in FY17 from 852 in the previous year. While, faster approvals expedite the commercialization of product pipelines of domestic pharma companies spurring growth. At the same time, however, it has raised the intensity of competition resulting in pricing pressures. The price erosion has been further compounded by a consolidation among US distributors and the decline in the number of products going off-patent over the past few years.
