Stand-off between Israel and Iran puts pharmaceutical companies on edge

The Israel-Iran stand-off is causing concern in the pharma industry, with potential impacts on raw material prices, finished goods exports, and employee welfare in the region. The industry is on edge as an escalation could affect oil prices, leading to increased costs for raw materials and packaging, according to industry experts.

While Israel and Iran may not be major markets for the pharma industry, the safety of employees and potential follow-up measures are top concerns. Industry observers are also wary of the impact that oil price fluctuations could have on global supplies and logistics. Despite conflicts, healthcare and medicines are usually spared, as they are essential for everyone.

Sun Pharma’s subsidiary, Israeli drugmaker Taro, operates in multiple countries, including the US, Canada, and Israel. During the Israel-Hamas conflict last November, Sun Pharma’s top management focused on ensuring employee safety and business continuity.

The Pharmaceutical Export Promotion Council’s Director General noted India’s steady growth in pharma exports, reaching $27.8 billion for the year ended March 2024. With exports to countries like the UAE amounting to $350 million, the industry faces challenges from global crises that add pressure to financial performance.

As the situation evolves, industry representatives are monitoring the potential impact of the Israel-Iran stand-off on the pharma sector. The uncertainty surrounding global challenges exacerbates existing pressures on the industry, including recent marginal price increases allowed in the domestic market.