GST impact Pharma sector supply chain coping well after rollout
Drug manufacturer Biocon on Thursday said most of the supply chain in pharmaceuticals sector seems to be coping after the implementation of the Goods and Services Tax (GST) system from July 1.
"Most of the supply chain seems to be coping... the kind of apprehension expressed by stockists and pharmacists is not the way they were expecting it. I just hope this continues to be smooth and companies do not face any problems," Biocon CMD Kiran Mazumdar Shaw told BTVi in an interview.
She said there was no point in delaying the GST as "it is a game-changing reform".
"I think we need to get on with it and keep correcting the course as we encounter glitches," she said.
She said the new indirect tax system will significantly benefit the Indian economy and business and there is a need to focus on positives despite concerns and temporary impacts.
Speaking on the company's new drugs in the pipeline, Shaw said the firm's focus is on regulatory approvals for bio-similars pending with US Food and Drug Administration.
She said time is needed to prepare for commercial launch of the new products.
About the progress of insulin facility in Malaysia, She said the plant is up and running.
"Over the next two fiscals, we expect 20 per cent of our revenue from bio-similars. That is something we remain committed too. Our research services will likely account for 25 per cent, historic small molecules business likely to account for another 30 per cent," she said.