The U.S. Food and Drug Administration has become something of a bogeyman for India’s stock market.
An inspection blitz on Indian drug factories that supply to the U.S. helped push the broader index of Indian health-care stocks down by as much as 20 percent earlier this year from its all-time high in 2015 after some top firms received warning letters for failing to meet the regulator’s standards.
But even as the FDA has increased scrutiny of India, it’s been approving generic drug applications from the country’s firms at a record pace, with smaller companies like Aurobindo Pharma Ltd. and Glenmark Pharmaceuticals Ltd. leading the pack.
