Indian pharmaceutical firms have spent decades supplying American patients with affordable medicines. That dominance will be difficult to challenge, despite President Donald Trump’s threat to impose steep tariffs on imported generic drugs.
His pledge last month to apply a 100% levy on companies making off-patent medications by 2028 (rising to 200% a year later) unless they move production to the US faces formidable commercial and political obstacles. Instead of rushing to fire up new manufacturing facilities, the likes of Sun Pharmaceutical Industries Ltd. and Dr. Reddy's Laboratories Ltd. would be better off biding their time. The duties may never fully materialize.
Also read: Udan vs Udaan: Delhi court restrains pharmaceutical firm from using 'Udaan' mark
That’s because generic medicines play a crucial role in the healthcare system. Once patent protections on branded drugs expire, other manufacturers can produce equivalent versions, introducing competition that drives prices sharply lower. The difference can be enormous. According to one US Food & Drug Administration study, the price of an HIV medicine, Truvada, fell from about $50 to $3 a tablet shortly after generic versions became available.
