Indian drugmakers bemoan rising Chinese inventory costs

Chinese inventory costs for Indian drug companies have soared by 10% compared to the pre-COVID-19 days. Indian companies are dependent on China for all the key ingredients made using the fermentation process, where China has achieved global dominance and capacities

India imports more than 53 critical active pharmaceutical ingredients (APIs), including those used in tuberculosis medicines, steriods and vitamins from China.

Chinese suppliers had already implemented a 20% increase in the price of APIs and key starting materials (KSMs) supplies got back on track around April. However, a decrease in domestic demand in India, resulting in a five-month inventory getting converted into a nine-month inventory, has aided this trend.