Door to big orders: 'Biosecure Act' in US will increase orders from Indian companies

An American law could open the door to larger orders for Indian medical companies. The US Parliament has passed a special law 'Biosecure Act' on Monday. This prevents those pharma companies from ordering or servicing China's elite biotech companies, which receive capital from the US government. Meanwhile, they have to contract with biotechnology companies in India and Korea. The provisions of the Biosecure Act will have the most profound impact on Chinese companies such as Wuxi Aptech Co. 65% of the company's annual revenue comes from America. Shares of Indian pharma companies rise up to 105% According to Bajaj Finserv Asset Management's Nimesh Chandan, the Indian pharma sector is poised to tap new opportunities emerging in the American market. The US Congress passed the Biosecure Act bill this year. Since then shares like Divis Lab, Piramal Pharma, Newland Laboratories have seen a jump of 34-105%. US imports 31% of drugs, medical devices from China In 2023, US imported 57.6% of pharma products from India and China. China's share was 31.5%. America imported a total of 1.6 lakh crore rupees worth of pharma products from these two countries. China's share was Rs 65,469 crore. A large part of it may shift to India.

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