World’s largest manufacturer of ibuprofen experienced one of the best month in more than two years owning to the prolonged shutdown of China’s Hubei province which encouraged the increase of prices of non-prescription painkillers.
The company supplies about a third of world’s requirement of the drug, with a 10 percent coming from China’s Hubei Biocause Pharmaceutical Co.
Reports suggest prices of ibuprofen have risen from $3 per kilogram in the past few weeks to $18. Furthermore, it may continue to hit $20 if supplies from Hubei remain unavailable.
“There will be a supply gap and we expect to benefit,” commented Vijay Kumar Garg, joint managing director at IOL.
In his statement, Garg further anticipated that IOL’s revenue will increase to about 25 per cent to 21 billion rupees ($292 million) in the year through March 31, out of which the exports will contribute roughly to a third.
Among IOL’s clients are top ten Indian drug makers such as Abbott India Ltd., Cipla Ltd., Dr Reddy’s Laboratories Ltd.
IOL’s shares rose 43 per cent — to 254.75 rupees in February and recorded to be the company’s best month since October 2017.
IOL manufactures 12,000 tons of ibuprofen each year at its factory in the northern Indian state of Punjab. The plant is currently running at 80 per cent production, Garg stated.
“Frankly, we don’t want to take undue advantage of the situation,” Garg said. “We expect a certain higher price but don’t want to force people.”