Indian Generics Drug Market Unlikely to Be Affected by Trump's Drug Price Order, Says IPA

The U.S. Executive Order to reduce the cost of prescription drugs has prompted the Indian Pharmaceutical Alliance (IPA) to reply, highlighting the necessity of striking a balance between affordability and innovation. President Donald Trump signed the order on May 12 in an effort to bring domestic medicine prices into line with those of other developed countries.

The difficulties of striking a balance between ongoing innovation and drug cost were emphasized by IPA Secretary General Sudarshan Jain. "Research and development in life sciences demand substantial investment and carry high risks," said Jain. "The cost of innovation should be shared equitably across all stakeholders."

Pharmacies in the United States are required by the Executive Order to match their rates with Most-Favorable-Nation (MFN) pricing within 30 days or risk penalties. Because they are likely to modify their U.S. pricing, the IPA believes that innovation businesses would be the ones most affected by the changes.

It is unlikely that the generic pharmaceutical industry will be much affected, though. According to the IPA, the generics industry, which accounts for 90% of prescription volumes in the US but just 13% of market value, is essential to maintaining the affordability of medications. "Generics operate on thin margins, and their ability to provide low-cost medications remains unaffected by the Executive Order," stated the IPA.

Since more information on the Executive Order's implementation is anticipated from the U.S. administration, its full consequences are still unknown. With the goal of ensuring that American consumers no longer pay disproportionately high prices for medications in comparison to those in other nations, this directive builds on President Trump's previous initiatives to address pricing inequalities in the pharmaceutical industry.