Near-term gains for domestic generic makers

New Delhi: Domestic generic producers are likely to see near-term gains as higher prices for branded drugs can push demand towards cost-effective alternatives after the US announced its decision to impose 100 per cent tariffs on the pharmaceuticals industry from October 1, analysts said on Friday. Generic drugs are currently exempted from US tariffs and according to Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance (IPA), “the latest tariff announcement is for branded or patented drugs, and not applicable to generics.” Domestic pharmaceutical firms supply a substantial proportion of drugs to US residents.

As per industry sources, overall, medicines from Indian companies provided $219 billion in savings to the US healthcare system in 2022 and a total of $1.3 trillion between 2013 and 2022.