US healthcare Bill: Gains for Indian pharma (Posted - 26 Mar 2009)
Opportunities will also stem from the clear support for generics
The healthcare reform Bill proposed by US President Barack Obama is now a law as the Patient Protection and Affordable Care Act. With the US market accounting for about half the global pharma sales, this may completely change the industry.
Big Pharma (top global innovator companies) will have to pay fresh taxes, but will gain a huge new market. Generic manufacturers, though losing out on the patent exclusivity battle for branded drugs, will gain from the reforms in the insurance market and easier regulatory procedures for bio-similars, according to analysts.
The Act has served 32 million new consumers in the world’s most lucrative market by extending insurance coverage to a larger pool, covering 95 per cent of the American population. Direct new business for the industry from the newly-insured is estimated at $115 billion over the next 10 years.
That apart, “Copay reforms, elimination of lifetime caps, and enhanced coverage of preventative services can easily generate an even bigger boost in prescription utilisation than will come from the newly insured,” says a pharma industry report by RPM.
For Indian generic manufacturers, benefits will stem from the omission of any ban on pay-for-delay settlements between innovators and generic manufacturers.
With drugs valued at over $100 billion set to lose patent exclusivity in the next five to six years (according to an Ambit report), generic manufacturers will continue to trawl the space for opportunities.
Opportunities will also stem from the clear support for generics as evinced in closing the ‘donut hole’ in Medicare part D (medical services plus prescription drug coverage plans) for senior citizens.
Ambit research points out that Glenmark, Lupin and Sun Pharma have maximum exposure in the US (sales percentage in the ninemonth period ending December 2009), while Ranbaxy, Sun Pharma and Dr Reddy’s lead the table in the number of abbreviated new drug applications.
source - Business Standard
Disclaimer: Information presented on this site is a guide only. It may not necessarily be correct and is not intended to be taken as financial advice nor has it been prepared with regard to the individual investment needs and objectives or financial situation of any particular person. Stock quotes are believed to be accurate and correctly dated, but www.daytradingshares.com does not warrant or guarantee their accuracy or date.
www.daytradingshares.com takes no responsibility for any investment decisions based on recommendations provided on website.
Financial contents like Technical charts,historical charts and quotes are taken from NSE and Yahoo sites.
Note - All quotes are delayed by 15 minutes and unless specified.
Please read at www.daytradingshares.com/disclaimer.php before using any material or advice given at www.daytradingshares.com
Copyright © 2009 DayTradingShares.com. All Rights Reserved.
Sector Specific - US healthcare Bill: Gains for Indian pharma
Welcome to Indian Share Market
Your Desire to Earn
