Will Drug Pricing Hurt Indian Pharma Exports?
President Trump’s plan to slash US drug pricing by 30-80% via a “Most Favoured Nation” pricing model, announced May 12, 2025, poses challenges for Indian pharma, particularly firms like Sun Pharma with specialty/patented portfolios.
With 30-45% of their revenue from the US, Indian generic players face potential margin compression in a highly competitive market with 8-12% annual price erosion.
Lower patented drug prices may reduce generic market share post-patent expiry.
However, the policy’s feasibility is uncertain, facing legal pushback from big pharma.
Opportunities arise for Indian CRO/CDMO firms like Syngene and Sai Life, leveraging cost-effective R&D amid decoupling from China.
Some companies may exit unprofitable US drug segments.
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