ETMarkets.com: The $20-billion Indian pharmaceutical industry is going through a phase of prolonged crisis. The recent spate of regulatory scrutiny, warning letters and Form 483s from the drug regulator of the biggest export markets -US and Europe -has resulted in complete loss of faith for investors.
What are Warning Letters About?
An increasing number of Indian pharma firms have come under the k n i f e o f U S Fo o d a n d D r u g Administration (FDA) due to lack of trained staff and cleanliness at their manufacturing units.
“In pharma, our stance is to buy after the pain rather than before the pain.We are looking at businesses that go through huge price corrections because of warning letters and where we see that as a non-fatal problem. The recovery should come in a year or two,“ said Rajeev Thakkar, CIO, Parag Parikh Financial Advisory Services.