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Price cap cuts US margins of Indian drugmakers
Financial Express Kolkata
|December 08, 2025
Larger firms increase sales of speciality products
EVEN AS THE Indian pharmaceutical sector remains largely insulated from US tariffactions, majordomesticdrugmakers are scrambling to defend market share in theirlargest export destination.
Pricing pressure in the US generics market continues to drive steep price erosion, leaving companies suchas Sun Pharmaceutical Industries, Dr Reddy’s Laboratories, and Aurobindo Pharma reporting flat to negative US revenue growth for several quarters.
Sun Pharma, which derives 32.6% of its total revenue from the US, posted flat US salesin the second quarter of FY26 amid ongoing weakness in its generics portfolio. DrReddy’salsosaw US revenue decline in Q2, hurt byprice erosion in key products, particularly gRevlimid,a generic oncology drug. Aurobindo Pharma reported similarly muted US performance due to persistent softness in generics.
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