Indian Drug Producers Not Concerned About Trump Policies

indian drugs

It was just a couple of months ago that President Donald Trump held a press conference where he vowed to reinvigorate the drugs industry in the US. Stating that the US must start producing more at home and cut prices, he went on to bash the industry by saying that the pharmaceutical companies are ‘leaving left and right’, reasoning that although the drugs are supplied to the US, they are not made in the country.

Trump’s determination to produce home grown drugs sent minor shock waves throughout the Indian pharmaceuticals industry, with the threat of pricing pressure in the US market sending share prices tumbling. In the aftermath of the press conference, where the President said the companies were ‘getting away with murder’, share prices in Dr Reddy’s, Sun Pharma and Lupin all fell.

Now however it seems that Indian Pharma is not too worried about the Trump administration after the President met with several leading figures of multinational pharmaceutical companies including Merck and Eli Lilly. Trump stated that although the companies had done a ‘good job’ over the years there was a pressing need to get the prices down. He even went as far as to say the government would intervene if necessary in an attempt to negotiate industry prices directly. Although the warning may have set alarm bells ringing for Indian pharmaceutical companies, who rely on the American market for almost half of their revenue, the belief seems to be that American companies are going to find it hard to make the radical changes Trump wants.

Despite the potential for restrictions and increased import taxes that Indian companies could face, the CMD of Cadila Healthcare, Pankej Patel wasn’t too concerned. He stated that companies in India already have very low prices, making it ‘difficult’ for American companies to compete. Drug makers in India believe that the move by the President is aimed at getting US companies who manufacture outside the US but charge astronomical prices within it to get their prices down. The CMD of Biocon, Kiran Mazumdar Shaw, said that he believed the visions of Trump and Indian pharma were ‘aligned’ as far as healthcare costs were concerned and couldn’t see any signs of a major impact with the anticipated policy change.





Wilson Sonsini Goodrich & Rosati is the premier legal advisor to technology, life sciences, and other growth enterprises worldwide. In today’s fast-growing, highly regulated generic pharmaceutical market, companies require specialized legal guidance beyond the scope of general corporate and securities counsel. WSGR has an experienced team of experts in key practice areas, including intellectual property, litigation, antitrust, FDA/regulatory, technology transactions, exports and FCPA, trade secret, and trademark and copyrights. Learn more at www.wsgr.

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