Re-Pivoting Pharma Strategy

The United States has effectively shut the door on several Indian medicines after President Donald Trump imposed a steep 100 per cent duty on branded and patented drugs. The tariff, effective from October 1, triggered trade and policy uncertainty across the global pharmaceutical industry. Till then, medicines had largely been spared from the Trump administration's tariff regime. The abrupt move forced drug exporters to the US to rethink their strategies. India, however, remained insulated to some extent because of the nature of its export basket and presence of manufacturing units of some Indian companies in the US.

- Dr Milind Kokje

India's drug exports to the US primarily comprise generic medicines, and these have been exempted from the new tariffs. India supplies nearly 50 per cent of the US' generic drug requirements, playing a critical role in the US healthcare system's savings — an estimated $1.3 trillion between 2013 and 2022.

A major wiggle room for Indian pharmaceutical companies is that they either have manufacturing facilities in the US or are in the process of building them, many already producing within the United States. The tariff announcement also exempted companies that are building, expanding, or breaking ground on US-based manufacturing plants.