Cipla Says Indian Generics Safe from US Pricing Rule

Cipla Global CEO and Managing Director Umang Vohra stated that the recent US government directive ordering pharma firms to reduce the price of prescription medicine in 30 days is not likely to affect Indian generic drug makers.

Reacting to the Executive Order issued by US President Donald Trump on May 12, Vohra said the move seems to be aimed at branded drugs more than generics. "As far as we know, this is targeted mainly at branded drugs and seems to be a voluntary move for the moment," he said.

He added that the details regarding the applicability of the Executive Order, especially clauses like Most Favoured Nation (MFN) ones, are unclear. "Generic drug in the US today are already quite competitive on the international stage and in some cases even cheaper compared to other markets. Going by the present impression of the order, it does not appear so much as for the generic space as for the branded one," Vohra said.

The Executive Order directs the US Department of Health to negotiate lower rates for prescription drugs. If no new pricing schedule is agreed within 30 days, a rule will be applied linking US drug prices to rates paid in foreign countries.

Responding to concerns regarding possible tariffs on pharmaceuticals imported into the US, Vohra put to rest the fears that Cipla's operations have been impacted. "Our business continues as usual. There's never been any stoppage at any place in the US on account of any confusion with respect to tariffs.

"And so we don't see the impact. In any case, we are in the generics sector. The purpose of what we do is to provide medicines to people who really need it from an affordability perspective. So, as of now, we don't see any impact of tariffs on our business," he added.

Vohra also pointed out the continuing developments in India-US trade relations. "We are monitoring all of that. And you know, we don't expect material changes to the business environment for generics," he said.