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Pharmaceuticals

Indian drugmakers may suffer profit drop as coronavirus threatens China supplies

Inventory of pharmaceutical ingredients may barely last for two more months

Most companies such as Sun Pharmaceutical Industries and Cipla are well stocked up with inventory up until the first quarter.   © Reuters

MUMBAI (NewsRise) -- The uncontained spread of the new coronavirus poses a fresh threat to the profitability of Indian drug makers, whose inventory of pharmaceutical ingredients may barely last for two more months.

Most Indian companies source the bulk of their intermediates or early-stage active pharmaceutical ingredients from China where the deadly virus outbreak started late last year. The contagion, which has disrupted supply chains across industries including metals, automobiles, and electronics, has virtually brought all activities in the mainland to a halt. As the outbreak has spread to several countries, authorities around the world are taking steps such as travel ban to tackle the virus threat.

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