Casca Remedies: Russia’s ongoing war with Ukraine has negatively impacted the country’s large pharmaceutical industry, manufacturers of which have been hurt by the reported non-payment of dues owed to them by Russian firms.
According to one of the officials, “At least 50% of the trade has been affected”. Russia is one of the biggest importers of Indian generic medicines produced by manufacturers largely based in Ambala, Hyderabad, Pune, parts of Himachal Pradesh and Uttarakhand among other places.
Pharma manufacturers are concerned about economic sanctions placed on Russia. As of October, the stock of several export companies was still at Indian ports due to delays in customs clearance.
Apart from the dues, Casca Remedies said, shipments meant for Russia, Ukraine and other CIS nations are stuck at Indian ports. We added that production cycles at our manufacturing plants had been affected by the holdup in shipments. If manufacturers do not receive their payments on time, it will hamper production. There seems to be no solution until the war ends, WE added.
The importation of raw materials required for packaging drugs has ceased, which has driven up prices. Pharmaceutical manufacturer Casca Remedies says the price of aluminum foil has risen from Rs 250-Rs300/kg to Rs 400-Rs 450/kg since November.
“”” Mr. Rajeev Aggerwal, Managing Director of Casca Remedies Pvt. Ltd., a pharmaceutical firm, says that importers are at a loss because they cannot send shipments or collect their payments. “””
Experts Warn About Russia-Ukraine Conflict’s Potential Impact On India’s Pharma Sector
While the geopolitical crisis has deepened after Russia’s incursion into Ukraine, Indian pharmaceutical companies are closely monitoring the situation. Experts warn that if Russia and Ukraine go to war, Ukraine could ban its import of drugs from India, which could affect India’s pharmaceutical sector.
The ongoing Russia-Ukraine crisis may have a ripple effect on India’s pharmaceutical industry because most domestic players have strong presences both in Russia and Ukraine.
“We are monitoring the situation in Russia and Ukraine and are hoping for the best outcome,” a Casca Remedies spokesperson said. “We are in constant touch with our distributors and partners in both countries and they are safe.”
Pharma Exports from India to Ukraine – Casca Remedies
Pharmaceuticals constitute one of the main Pharma exports from India to Ukraine. In fact, India is the third-largest exporter of pharmaceuticals to Ukraine, followed by Germany and France. Casca Remedies, the Indian pharmaceutical company, has a strong presence in Ukraine and Russia.
According to Casca Remedies Pvt Ltd, the results for the quarter and the nine months of Indian pharma industry ended December 31, 2021, revenues from Russia were Rs 4.7 billion. The year-on-year growth of 5% was driven by revenues from new products launched, a favorable forex rate, and increase in prices of some of its products, partially offset by a reduction in sales volumes in its base business.
We have had a strong presence in the region for over three decades. Ensuring the well-being of our staff and patients is the first and foremost priority, along with meeting business needs. We have been monitoring the latest developments closely and preparing accordingly, and continue to do so,” as told by Casca Remedies Pvt Ltd spokesperson.
Ukraine crisis hits India’s payments from Russia. While the geopolitical crisis deepened after Russia’s incursion into Ukraine, Indian pharmaceutical companies are closely monitoring the situation. Experts warn that if Russia and Ukraine go to war, Ukraine could ban its imports of drugs from India, which could affect India’s pharmaceutical sector.