Indian Drug Firms Tweak Global Plans Amid US Pricing Shake-Up

Indian generic drug firms are reconsidering their US export strategy following the issuance of an executive order (EO) by US President Donald Trump to reduce prescription drug prices. The US, which imports almost $9 billion of Indian generics annually and accounts for 40% of its generic drug business, is susceptible to pricing and regulatory changes that could impact global supply chains.

The EO, restoring Trump's "Most Favored Nation" (MFN) drug price policy, makes US drug prices align with other developed countries' prices. The policy is mainly aimed at high-cost branded drugs, but specialists warn of unintended effects on generics as unrealistic. Court hearings may delay the rollout to 2026, but Indian pharma heroes emphasize the importance of flexibility.

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Cyril Amarchand Mangaldas's Ravi Shah further added that the 30-day grace period of compliance tightens international supply chains but comparatively has minimal short-term effect on Indian generics. The move could trigger generics and biosimilar opportunities, opined industry leaders such as Dr. Ajit Dangi and Kiran Mazumdar Shaw, if companies can evolve.

Some assert Indian companies might have to look at establishing US-headquartered manufacturing facilities, joint ventures, or diversifying the export base of markets beyond the US to mitigate tariff and compliance risk. HRV Global Life Sciences and Cipla, for instance, are already looking ahead to EU, LATAM, and MENA markets.

A multi-pronged approach complex generics, biosimilars, value-based medicines, and better compliance, will be the need of the hour, experts believe. With global pressures building and price reforms in the pipeline, Indian pharma will have to move its focus from volume to value, using its cost advantage and innovation capabilities to continue its global lead in generics.