Unrest challenges India supply chain

Worker strikes plus road and rail blockades are conspiring against Hyderabad's image as a go-to destination for drugmakers. Civil unrest is the cause, and it's making some pharmaceutical companies rethink their relocation plans. Japan's Eisai, for example, is holding off a planned investment.

The strikes and blockades are big impediments to a global industry that runs on its manufacturing and supply chain operations. Given drug counterfeiting and cargo thefts, the blockades can only further disrupt a supply chain already saddled with temperature control and regulatory constraints. Officials launched a task force to protect business interests, but not before the drug industry took a $100 million hit in losses in December.

Meanwhile, the FDA continues its scrutiny of India-based drugmakers. The regulator issued a warning letter to a Ranbaxy Labs' unit for GMP violations following inspection of a New York facility. And other Indian companies--including Sun Pharmaceutical Industries' Caraco unit and Lupin--also have felt the FDA's sting.

And an executive at an unnamed pharmaceutical company in Bangalore was arrested this month after the company was caught dumping seven barrels of a chemical identified as prophtyphozone in a deserted railway bed.

- read the AFP's Hyderabad article
- see the WSJ piece
- here's the chemical dumping item

Suggested Articles

Dr. Reddy’s says it has been told the FDA will not take regulatory action at its sterile formulations plant in Duvvada, Visakhapatnam.

The end is near for a GlaxoSmithKline OTC plant in Pennsylvania and its 260 employees. In fact, it has a date. 

The FDA is bracing for drug and medical supply shortages in the U.S. as the COVID-19 outbreak from China continues to spread globally.