Sun Pharma, Cipla Have More Upside; Chinese Drug Deals May Lower Oncology Costs: Systematix
Key Takeaways
- •Systematix Group analyst Vishal Manchanda expects more Indian drugmakers to partner with Chinese pharmaceutical companies.
- •The focus on scale and volumes in these partnerships could bring down oncology drug prices in India.
- •Manchanda sees smaller CDMO companies offering stronger upside as new contracts and opportunities emerge.
- •Cross-border pharma collaboration between India and China has been expanding as Indian firms seek Chinese chemistry, manufacturing scale, and cost advantages.
- •Cancer therapies are among the most expensive treatments in India, where much health spending is paid out of pocket.
Vishal Manchanda, Pharma Analyst at Systematix Group, expects more Indian drugmakers to partner with Chinese pharmaceutical companies, with their focus on scale and volumes potentially bringing down oncology drug prices. Manchanda also sees smaller CDMO companies offering stronger upside as new contracts and opportunities emerge.
The comments come at a time when cross-border pharma collaboration between India and China has been expanding, as Indian companies look to access Chinese chemistry, manufacturing scale and cost advantages. For patients and payers, any reduction in oncology drug costs would be significant, as cancer therapies remain among the most expensive segments of treatment in India, where a large share of health spending is paid out of pocket.
Contract Development and Manufacturing Organisations (CDMOs) provide drug development and manufacturing services to pharma companies, and the segment has been growing as global drugmakers increasingly outsource production.
The views and tips expressed by investment experts on CNBCTV18.com are their own and not those of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.
