Turning the tariff tight spot into a sweet spot

US President Trump's fresh salvo of 100 per cent tariffs on branded or patented pharmaceutical products not 'Made in America' finally ends months of suspense. For now, there's a sense of cautious relief among India Pharma that off patent generics, the bulk of our exports to the US, have been exempted.

- VIVEKA ROYCHOWDHURY, Editor [e-mail] [e-mail]

The devil lies in the definitions, especially as products like generic biologics are generally considered as brands themselves. Follow on clarifications have already started coming in, adding more nuance to the September 26 Truth Social announcement. On September 27, a Bloomberg report quoted a White House official clarifying that countries with negotiated agreements with the US, like the EU and Japan among other countries, are exempted from the 100 per cent tariffs on imported branded or patented pharmaceutical products.

The true danger lies in resting on our "Pharmacy of the World' blindspot. India Pharma Inc has excelled at turning a tight spot into a sweet spot. And this could be one such turning point.

As India Pharma Inc mulls adding more manufacturing muscle in the US, there are quite a few takers for their investments. For example, New Jersey governor Phil Murphy was on a week long, four city India tour. In a closed door meeting hosted by international law firm Nishith Desai Associates on September 24 during the Mumbai leg of his India trip, Governor Murphy pitched his state as an ideal life sciences innovation destination. Choose New Jersey officials spoke about strategic innovation centers like the lifesciences-focused HELIX innovation district, as well as "try before you buy" real estate options as part of a "soft landing ecosystem" designed to ease potential investors into settling into NJ.

Aurobindo Pharma, Glenmark Pharma, Dr Reddy's Laboratories, Sun Pharma, Enzene Biosciences were familiar logos in the Partner with New Jersey booklet, which also mentioned Biocon's $20 million investment, announced this month, its first manufacturing site in the US.