Headline: Formalities increase for Goan pharma cos to access EU market
Strap: Pound-rupee movement in days ahead crucial too
Karan Sehgal
As the UK moves out of the European Union (EU), pharmaceutical companies in Goa, in all likelihood, will have to get one more approval to access European markets through the UK. The same will be the case if these companies try to access British market through Europe.
N Sriram, director, Tulip Group of Companies, said, “Till now, there was one central approval for the whole of EU for exporting drugs and medical devices from here in India. But with the UK choosing to stay out of the EU, we will have to get one approval from British authorities to export and another approval to export to elsewhere in Europe. This means we will have to get one more approval”
It is still early days for pharmaceutical companies to know the exact details of how the trade will be impacted, but it is very possible that they will have to get one more approval. Pharmaceutical companies in Goa get most of their sales through export to the EU and the US.
Dilip Salgaocar, chairman, Geno Pharmaceuticals, said, “We were also trying to get approval to export to the UK and were intending to access the EU market from there. Now, with the UK choosing to stay out of the EU, our plans will change. But, it is too early to know exactly how”
Pharma companies are also worried about the depreciating value of British pound. Compared to Rupee, pound had fallen by around 7% on June 24th. This is a major concern for pharma companies as their exports to the UK are valued in pound.
Sriram added, “It will be important for us to see how pound and rupee behave. It may be beneficial for us or it may not be beneficial. I think we will have to keep a close tab on the movement of these two currencies over next one week to really say something”
Quote: We were also trying to get approval to export to the UK and were intending to access the EU market from there. Now, with the UK choosing to stay out of the EU, our plans will change. But, it is too early to know exactly how - Dilip Salgaocar, chairman, Geno Pharmaceuticals
