NEW DELHI/HYDERABAD: India’s generic companies are likely to continue in business-as-usual mode as US President Donald Trump’s 100% levy on pharmaceuticals is targeted at branded and patented medicines, but it may also prompt some of them to rethink their playbook.Industry experts told TOI that the country’s largest drugmaker Sun Pharma could face headwinds as its drug sales in US totalled $1.1 billion in FY25 (in which patented drugs have a significant portion), which was around 17% of its total revenue. Analysts added that branded biosimilars manufactured by companies, including Biocon, may be affected.Companies with manufacturing bases in US – including Sun Pharma, Dr Reddy’s and Cipla – could cushion the blow by shifting production of higher-value specialty and niche drugs from India to the American facilities, said experts. Over time, the move could drive companies to diversify export markets, recalibrate global strategies, shift to contract manufacturing in the US and set up manufacturing bases there to safeguard access to the world’s most lucrative market.“At this point, we do not see an impact,” Dr Reddy’s co-chairman & MD G V Prasad said, adding, the company also does not see expanding its manufacturing footprint in the US immediately. “Domestic companies are examining all options to mitigate risk, ranging from setting up manufacturing facilities in the US to shifting production of high-value specialty drugs, niche therapies and peptides to existing plants,” an industry expert said. India’s pharma exports to the US were close to $10 billion last year and it serviced around 35% of US prescriptions with affordable generics.“India plays a vital role in US healthcare by ensuring a steady supply of affordable medicines. A majority of life-saving cardiac, diabetes and chronic medicines are supplied from India,” said Indian Pharmaceutical Alliance secretary general Sudarshan Jain. Deepak Jotwani, VP & sector head, corporate ratings, Icra added, “Overall, this move by the US underscores the need for Indian pharma companies to diversify markets and innovate in complex generics and biosimilars to stay resilient in a changing global trade landscape.“Pharmexcil chairman Namit Joshi said most large Indian companies already operate manufacturing or repackaging units in US and are exploring further acquisitions. “India will need to reinforce its cost-efficiency advantage in bulk drugs and APIs, an area where the US is likely to favour India over other suppliers, and simultaneously invest in next-generation opportunities, such as complex generics, peptides and biosimilars.” The pharma sector is awaiting more clarity on the announcement as it did not specify whether speciality drugs, niche or complex generic drugs are under its ambit. However, a few experts said there was uncertainty over the definition of “branded” drugs. “If we take the terms branded and patented products at face value, Granules does not fall into either category,” Granules India ED Priyanka Chigurupati said.
