New Delhi: As the US and Iran move closer to signing the long-awaited peace agreement, prices of pharmaceutical inputs are showing signs of correction, offering relief to drug manufacturers struggling to manage the war-linked price shocks.

“The easing of geopolitical tensions in West Asia has brought some much-needed relief to the pharmaceutical supply chain. we are seeing early signs of correction in input costs, which could gradually support API pricing as well,” said Bhavin Mehta, Vice Chairman, Pharmexcil.

The near-effective closure of the Strait of Hormuz by Iran since the beginning of crisis in West Asia had disrupted pharmaceutical supply chains, triggering a 20–50 per cent spike in API prices and freight costs. Additionally companies had also countered the second-order impact from soaring crude oil prices.

However, Mehta cautioned that, “it is still early, and the industry would like to see sustained stability before assessing the full extent of the impact.”

While product-level corrections remain unclear, according to the expert, the industry is closely monitoring several petrochemical-based inputs and solvents, including methanol, ammonia, propylene derivatives, acetonitrile, and acetone, which are used in the production of a wide range of medicines.

Mehta said the revision in prices will depend on near-term movements in freight rates, and a complete normalisation is expected over the coming months, if the situation remains stable.

Source: ET Pharma - June 17,2026