Analysts expect Indian drug companies to strike deals with US to avoid tariff blow

IfSun Pharma is able to strike a Pfizer-like deal, it may avoid US tariff in near term, say experts

- SOHINI DAS

Indian players may followin US pharma giant Pfizer’s footsteps and sign deals with the Donald Trumpadministration agreeingtocut drug prices, which, inturn, may providesome relief from tariffs in an uncertain environment where import of patented drugs would attract 100 per cent tariff, analysts said.

Nuvama analysts said that such a move might result ina “temporary removal of overhang on branded pharma” in the US. It is relevant for Sun Pharmaceutical Industries which has exposure to the US innovative drugs market. Ilumya, its largest drug, generates revenue from Medicare Part B (nearly 50-60 percent), while the Medicaid contribution is likely to be around § per cent, according to Nuvama estimates.