State firms export generic drugs to US, unlikely to be impacted by 100 pc tariff

India’s pharmaceutical exporters do not anticipate any immediate impact of the 100 per cent tariff on the import of branded and patented medicines announced by US President Donald Trump but they are awaiting clarity on the issue. Most of the large Indian pharmaceutical companies have their manufacturing facilities in the US.

Dr Rajesh Gupta, president of the Himachal Drug Manufacturers Association, said, “Since the pharmaceutical industry in Himachal is largely manufacturing generic medicines, it will not be impacted by this announcement. However, we are awaiting the notification that will spell out details.”

The new tariff on imported medicines will be imposed from October 1 and the decision is said to have been taken to protect American companies from ‘unfair outside competition’. The 665-odd pharma companies of Himachal Pradesh are keenly awaiting the details of the notification.

Gupta said that 13 or 14 large pharmaceutical units like Dr Reddy’s Laboratories, Mcleods, Alchem, Mankind, Sun Pharma, etc., which export branded drugs to the US, already had their manufacturing facilities there and they would not be impacted by the current decision.

In Himachal, of the total 665 pharma units, 255 are World Health Organisation-GMP certified and have European Union-GMP and other international certifications like that from the US Food and Drug Administration.

Pharma exporters’ organisation Pharmexcil has similar views: “The bulk of our exports comprise simple generics and most of the large Indian pharma companies already operate manufacturing or repackaging units in the US and are exploring further acquisitions,” said Pharmexcil chairman Namit Joshi.

He referred to the ongoing investigation in the US to determine the effect of imports on national security and said, “It is prudent to remain prepared for future policy shifts and build risk-mitigation strategies. India accounts for affordable, high-quality medicines globally.”

According to Pharmexcil, “India supplies nearly 47 per cent of the US’s pharmaceutical requirement, particularly generic drugs, and ensures ready availability of affordable and essential medications ranging from life-saving oncology drugs and antibiotics to chronic disease treatments.”