Indian Pharma Giants Brace for Impact Amid U.S. Drug Price Shake-Up

India’s pharmaceutical sector is feeling the heat after U.S. President Donald Trump unveiled a bold plan to cut drug prices by 30-80%. This policy, aimed at making U.S. drug costs match lower prices in other countries, could shake up the 9 billion USD market for Indian generic drugs exported to the U.S. The Nifty Pharma index ended the day at 20,949.70, with investors unsure about what lies ahead.

Big names like Sun Pharma, Dr. Reddy’s, and Lupin, which rely on the U.S. for 28-47% of their sales, are under pressure. Sun Pharma’s stock fell 3.15%, while Ajanta Pharma and Glenmark slipped 2.28% and 1.44%, respectively. Yet, not all companies took a hit—Mankind Pharma jumped 3.73%, and Granules India climbed 4.79%, showing some players might weather the storm. Trump’s “Most Favored Nation” policy could squeeze profits on generic drugs, which are already much cheaper than brand-name versions, threatening the cost edge Indian firms have long enjoyed.

Experts say putting this plan into action won’t be easy. For instance, getting a generic drug approved in the U.S. costs 321,920 USD, compared to just Rs 15,000 in India, highlighting stark differences in regulatory expenses.“The U.S. relies heavily on our generics; any drastic move risks consumer backlash,” one analyst explained. The timing, alongside potential tariffs and U.S.-China trade talks, is making markets jittery.

Still, some believe the damage might be limited. Indian generics are a cornerstone of affordable healthcare in the U.S., and demand for them isn’t likely to vanish. “The U.S. depends on our low-cost drugs; any big disruption could upset American consumers,” a pharma insider said. As Indian companies wait for more details, they’re looking to diversify markets and innovate to stay competitive. With global healthcare in flux, India’s role as a leading supplier of affordable drugs is at a critical juncture.