US tariff: ‘No major impact on pharma’

The home pharma trade in India could not face vital impact from potential US tariffs on pharmaceutical exports. Indian generics, which dominate exports and are in steady demand, might take in further prices. Key trade gamers are awaiting additional particulars on the tariffs whereas partaking in bilateral talks.

NEW DELHI: The home pharma trade is probably not considerably impacted by potential US retaliatory tariffs as most exports to the US embody low-cost, price-inelastic generics that stay in fixed demand.
Indian pharma exports to the US, valued almost $10 billion, primarily embody oral formulations, and any further value burden would probably be shared between shoppers, healthcare suppliers, and home firms, analysts advised TOI.
India is a major provider to the US, offering over 45% of its generic medicines, pushed by an ageing inhabitants and demand for cost-effective healthcare. Given this, no nation would probably disrupt such a crucial provide chain.
Pharma shares have been beneath strain on Feb 19, following feedback from US President Donald Trump, who signalled that the US could impose tariffs of round 25% on pharmaceutical, vehicles and semiconductor imports. The trade is in a wait-and-watch mode, awaiting readability on the main points of potential tariffs, and is hopeful {that a} decision could also be reached by way of bilateral talks.
“Indian pharmaceutical industry plays a vital role in ensuring access to affordable, quality-assured medicines in the US, supplying nearly 47% of the generic medicines for American patients and contributing significantly to the country’s healthcare savings. The proposal regarding reciprocal tariffs is currently under talks and is being examined. This matter will be discussed through bilateral engagements,” Sudarshan Jain, secretary normal, Indian Pharma Alliance stated.
An imposition of a possible tariff would make a small distinction in absolute phrases for sure gamers, analysts really feel. In some instances, widely-sold paracetamol, azithromycin, cephalosporins value as little as 2 cents a pill.
“The effect will be more on innovators than generics as generics are very low in value. Some of these will be passed on and some will be absorbed by the seller. We will have to wait and see the financial impact,” Sujay Shetty, global health industries advisory leader, PwC India said.
“We do not see a lot of a major impact on Indian pharma (as of now). India is a strategic companion, which meets about 45-50% of the US necessities of generic medicines,” Deepak Jotwani of Icra stated.