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March 4, 2024
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Pharma supplies to India will likely be disrupted due to Shanghai lockdown

By Priti Naik

The Indian pharmaceutical industry will face disruption in supplies because of the lockdown imposed in Shanghai to curb the rise of Covid-19. There may be delays in receiving active pharmaceutical ingredients (APIs) and intermediates as the two main ports of Shanghai and Shenzhen have halted cargo operations.

The Chinese government on Sunday announced the biggest city-wide lockdown in Shanghai since the outbreak of the COVID-19 pandemic two years ago. However, the city will be shut in two stages over a period of nine days while authorities carry out intensive testing. China’s financial hub, which is home to 26 million people. Shanghai recorded 5,656 asymptomatic COVID-19 cases and 326 symptomatic cases against 4,381 new asymptomatic cases and 96 new cases with symptoms a day earlier.

According to industry experts, the lockdown in Shanghai, which houses the world’s largest container shipping port, will delay shipments in the days to come.

India is currently the world’s third-largest drug producer by volume and houses domestic companies like Sun Pharmaceuticals, Dr Reddy’s Laboratories, Mankind, Lupin, Glenmark, Torrent, Aurobindo Pharma and Abbott. These drug companies import 70 percent of raw materials or intermediates from China, which is used to make major antibiotics, paracetamol, as well as diabetes and cardiovascular drugs. Intermediates are chemical compounds that help in the production of APIs.

Of the total raw material imported from China, 20-30 percent arrives by cargo flights, while 70 percent comes by ship as the air route is more expensive. Air freight charges are$ 5-10 higher per kilo than cargo ships, Dinesh Dua, former chairman of the Pharmaceuticals Export Promotion Council, told the business daily.

At present, the industry is not facing any shortage as companies maintain extra inventory.

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