How Trump's return to White House could benefit Indian drugmakers
Donald Trump's return to the US presidency could have a major impact on India's pharmaceutical industry. The US is the largest importer of Indian medicines and other pharmaceutical products. Trump's corporate-empire-like leadership style is likely to focus on cost-cutting measures amid rising inflation. Government data shows the US accounts for over 31% of India's pharma exports, followed by the UK and Netherlands.
US Biosecure Act, 2024: A potential boon for Indian pharma
The US Biosecure Act, 2024, could prove beneficial for Indian pharmaceutical companies. The legislation intends to reduce America's reliance on Chinese supply chains, thus opening avenues for growth for India's pharma sector. "The Biosecure Act will stop US federal agencies from contracting or acquiring services and products from biotechnology companies of concern and the list includes major Chinese firms," a pharma industry veteran told News18.
Regulatory enhancements needed for India to capitalize
The industry veteran further added that while China's loss could be India's gain, it would need better regulatory frameworks for India to fully capitalize on this opportunity. An industry expert from a leading Indian pharma company based in Mumbai echoed similar sentiments to News18. He opined that Trump's style of governance is like running a business empire and expected an increase in various tariffs like fees for filing new drug applications.
Patent disputes and healthcare priorities
The industry expert also predicted that the patent disputes between India and major pharma companies will continue. "We don't expect big pharma lobbies to give up on the issue," he said. Sudarshan Jain, Secretary-General of the Indian Pharmaceutical Alliance (IPA), highlighted that affordable medicines and healthcare security are global priorities where India plays a key role by providing quality-assured affordable medicines to the US. IPA represents domestic drug makers like Lupin, Sun Pharma, Glenmark, Dr. Reddy's, and Cipla among others.
US-India partnership and medical device manufacturing
Jain hoped that the US-India Affordable Medicine Partnership will strengthen over time, enabling a diversified and resilient supply chain for Active Pharmaceutical Ingredients (API) and bolstering global healthcare security. Rajiv Nath, Forum Coordinator of the Association of Indian Manufacturers of Medical Devices (AiMeD), noted a possible opportunity for Indian medical device manufacturers as the USA recently hiked tariffs on certain Chinese medical devices.
