The Impact The major impact of this move will be felt by the pharmaceutical and medical establishment industry with short term marginal beneficial effect on the retailers. The effects on the medical profession will be variable and dependent upon multiple factors. The government and medical insurance sectors will be the major beneficiaries of this policy change. Pharmaceutical companies: Those which can rapidly adapt to this changing environment will survive and those with revenues coming predominantly from costly branded generics will be severely affected.
This move will give a major swadeshi thrust to Indian pharmaceutical companies who specialise in generics. The huge profit making MNCs will have to rethink their strategy and trim their flab. Another segment to be impacted will be those which have poor quality manufacturing practices and so produce drugs at lower prices. There can be…
