Nippon Chemiphar Struggles Despite New Launches
Japanese Company Bogged Down By COVID-19 And NHI Price Revisions
Nippon Chemiphar saw its overall sales drop by 7.9%, dragged down by a fall in generics sales of 9.7%, in its financial first half ended 30 September 2020. The Japanese company’s plan to ride on the success of new launches faltered as it was unable to compensate for the impact of NHI drug price revisions implemented in October 2019 and again in April 2020.
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Japan’s Nippon Chemiphar has managed to reduce its rate of decline in pharmaceutical sales in the third quarter of FY21, on the back of well-performing recently-launched generics and group-wide structural reforms and cost reductions. The company is making no changes to its full-year forecast.
After seeing a spike in demand due to the coronavirus pandemic in Q1, with a corresponding dip in Q2, the generics industry has largely seen single-digit drops in net revenues in the third quarter of 2020. Meanwhile, the Indian pharma market has seen recovery after facing a challenging coronavirus-induced slump in the first two quarters of 2020.
Japanese NHI drug price revisions implemented in October 2019 are responsible for operating profits halving amid declining sales and future uncertainty, Nippon Chemiphar said as it slashed its full-year forecast.