Despite a continuous upward move in the imported Ofloxacin prices since the introduction of import registration in the country, the Chinese exporters have been forced to reduce the prices drastically by an import resistance by Indian companies. Following a planned temporary freezing of import orders by the Indian importers, the Chinese companies have reduced the price of the product to $60/kg from $75 that existed till last fortnight.
According to market sources, the resistance from Indian importers coupled with a surplus production of ofloxacin in Chinese units, gave the exporters no option but to reduce the prices. The Mumbai-based pharmaceutical traders opined that the surplus production in China was in anticipation of increased exports to India.
However, on account of high prices, Indian companies started resisting ofloxacin imports from China, forcing them to reduce prices of the bulk drug, said Akhil Tody, a trader at Mumbai-based Nandlal Bankatlal Pvt Ltd, a Mumbai-based pharmaceutical trader.
After the import registration requirement made mandatory in India, the Chinese companies serially increased the price to $75 from $45. The US FDA approval for Ranbaxy to market generic ofloxacin in the US market in September further increased the price to $85 per kg. The price came back to $75 and continued to remain so till the first week of January, said traders.
Now again the prices have come back to $60 per kg after resistance from local companies, and surplus production at home. "The Chinese could also not divert ofloxacin to other markets. So they were forced to bring down the prices," said a trader.
Ofloxacin is an antibiotic used to treat certain infections caused by bacteria, such as pneumonia; bronchitis; venereal disease (VD); and prostate, skin, and urinary tract infections. Antibiotics will not work for colds, flu, or other viral infections. The total market for Ofloxacin in the country is about 25 tonne per month.
Currently the entire ofloxacin bulk to India is exported from China, as no domestic company manufactures the product in the country. "It is more cost-effective to import ofloxacin compared to manufacture the product in the country," said a trader.