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Bullish on pharma? 4 big challenges ahead

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Besides the issues on the import front, there are hindrances in exports too. Beginning this month, the government capped the limit under the Merchandise Export from India Scheme (MEIS) --capping the export benefit to Rs 2 crore instead of 2-5% of the export value.

Synopsis

Chinese manufacturers have increased the cost of key starting materials (KSMs), or intermediates, by up to 20%, escalating the input cost for Indian pharma companies.

ET Intelligence Group: Even as the valuation of drug companies keeps rising on the Street, the players in the sector are facing some immediate challenges related to imports and exports that are set to dent their performance in the coming quarters. The current valuations are yet to factor in these business headwinds.Price escalation of Chinese KSMsChinese manufacturers have increased the cost of key starting materials (KSMs), or intermediates, by

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