India’s Generic Pharma Exports To US Face Threat With Proposed Tariffs

WASHINGTON, DC (Reuters) – President Donald Trump announced plans to impose a 25% or higher tariff on semiconductor and pharmaceutical imports, a move that could significantly impact India’s pharmaceutical industry. The tariffs, set to increase over the next year, target an industry that supplies nearly 50% of the U.S.’s generic prescriptions and generated $8.7 billion in exports to the U.S. in fiscal 2024.

Indian pharmaceutical companies, which rely heavily on the U.S. market, may face increased costs that could be passed on to consumers. Here’s how some of India’s major drugmakers stand to be affected:

• Sun Pharmaceutical – India’s largest drugmaker derived 32% of its revenue from the U.S. in 2024. MD Dilip Shanghvi stated that the added costs would likely be transferred to consumers.
• Dr. Reddy’s Laboratories – North America accounted for 47% of its sales, driven by oncology and immunology generics. The company is betting on upcoming generic weight-loss drugs for future growth.
• Cipla – The company earned 30% of its revenue from North America, ranking among the top 15 U.S. prescription drug providers with a focus on respiratory and oncology generics.
• Biocon – The U.S. was its largest market, contributing 44% of revenue, with high demand for biosimilars treating conditions like cancer and arthritis.
• Lupin – Sales in North America made up 37% of its revenue, increasing 30% year-over-year due to strong demand for respiratory and antiretroviral generics.
• Glenmark Pharma – North America accounted for 26% of revenue, with a focus on expanding its respiratory drug portfolio.
• Zydus – The U.S. was its largest market, generating 46% of its total revenue, distributing over 200 generic products.