ARE INDIAN PHARMA EXPORTS AFFECTED BY TRUMP TARIFFS?

US President Donald Trump's imposition of 100% tariffs on branded and patented pharmaceutical exports to the US has rattled the global pharma industry and investors.

- DR P.S.VENKATESH RAO

A patented drug is a new medication with exclusive manufacturing rights to the innovator for 20 years. A generic drug is a bioequivalent version of the same drug, sold after its patent has expired. In the USA, patented (brand-name) drugs are significantly more expensive than generic versions that cost 80% to 85% less. Generics may differ in inactive ingredients, taste, and appearance, though not in their safety, dosage, or efficacy. 29.7% of branded and patented drugs imported into the US are from Ireland, which provides various incentives to international pharma companies. Other major suppliers to the US are Switzerland 8.8%, Singapore7.8%, Germany 7%, India5.3%, Belgium5.2%, Italy4.9%, China3.8%, Japan3.1%, UK3%. The price of many patented lifesaving drugs will increase sharply in the US. Since Indian exports are mostly generic drugs, our exports are less affected at present. There is ambiguity over whether complex generics and specialty medicines might be affected. Meanwhile, Zydus Lifesciences, with 50%, Dr Reddy's, with 47%, Sun Pharma, with 37%, and Cipla, with 30% of earnings dependent on the US market, had a sharp decline in their stock price.