Pharma || Hospitals || Diagnostics : Industry perspective

[sahil_vi]

@Investor_No_1

Let me try to elaborate a bit what I meant by saying COVID related global disruptions - If an API player has better growth because of companies focusing on additional supply chains - that’s the effect of Corona as the supply chain disruptions in lockdown phases and global restrictions etc. brought forward this food of thought.

API supply chains cannot be switched fast. It might take O(years) to file updated ANDAs to call out different API suppliers. This has been confirmed both in management concalls (Alembic management about Sartans) and also in my joint interaction (with @harsh.beria93) with a Pharma expert: Amit Rajan (posted here: Pharma compliance issues - #14 by harsh.beria93):

@harsh.beria93

API specifics

• Changing reagents or solvents without prior approval is not allowed. A company cannot simply upgrade/change the chemistry than what was originally promised (e.g.: in the DMF filing in the US), without seeking prior approval of the regulator. 90% of audit time gets wasted in this, with companies arguing that they have data backing up the usage of another process (e.g. the usage of recovered solvent). DMF is like a bond that a company signs with the FDA and a company cannot go back on their promise

Any China switches, either started before Covid (likely) or; if they are exacerbated by Covid, imo these are yet to reflect in Quarterly results.