Trump's drug pricing order boosts case for generics

US President Donald Trump's recent executive order to reduce prescription drug prices aims to address the significant price disparity of innovator drugs between the US and other developed markets like Europe and Australia.

- KIRAN MAZUMDAR-SHAW, EXECUTIVE CHAIRPERSON, BIOCON

Biocon executive chairperson Kiran Mazumdar-Shaw says the order encourages greater use of generics and biosimilars. In an interview with FE, she discusses what this means for the industry, as well as Biocon's latest performance, biosimilars growth, and US expansion. Excerpts:

How does President Trump's executive order on reducing the cost of prescription drugs in the US impact Indian pharma companies?

President Trump's executive order aims to narrow the pricing gap between innovator drugs in the US and those in developed markets like Europe and Australia. Rationalising drug costs has been a consistent focus for his administration, which now favours price negotiations over tariffs on imports. Crucially, the order does not target generics or biosimilars, which already offer affordable options under the Affordable Care Act. Nor does it seek price parity with developing countries. Indian companies like Biocon, with proven capabilities in cost-effective, high-quality manufacturing, are well-placed to support this shift. The order explicitly encourages the development of generics and biosimilars and facilitates access to lower-cost imports.

How is Biocon building its presence in the US?