Obama's key healthcare law may boost Indian generics

[epicresearch]

The historic ruling of the US Supreme Court last week which upheld President Barack Obama's Patient Protection and Affordable Care Act to make minimum healthcare insurance a must for the US citizens could also be a big opportunity for the Indian generic drug industry, reports CNBC-TV18's Archana Shukla.

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Barack Obama's big victory could turn out to be a big opportunity for the Indian generics drug industry. With the US Supreme Court upholiding Obama's healthcare reforms, mandating all Americans to secure "minimum essential" health insurance, another 26 million newly-insured patients will be added to the 250-million insured in the US.

Generics form 75-80% of all prescribed drugs sold in the US and experts say the expanding insurance coverage will force insurance companies to push for more generics to keep costs low.

Potential beneficiaries could be Indian generics drug companies like Dr. Reddy's Laboratories , Lupin , Ranbaxy and Glenmark .

Although the Healthcare Reform Law imposes an annual fee on drug firms who sell branded products at a premium in the US market, generic firms selling drugs at already discounted rates will be spared of the fee.