India's Generic Drug Exports Face Uncertainty Under Trump's New Pharma Orders

Indian pharmaceutical companies may encounter significant challenges in the US market following President Donald Trump's initiative to prioritize American-made prescription drugs. This move could potentially alter the global drug supply chain and impact India's exports, particularly in the generics sector, as highlighted in a Nuvama Research report.

The Potential Reshaping of Global Pharma Supply Chains

The report suggests that the full implementation of these orders could disrupt and reshape global pharma supply chains. It notes the announcement of $15 billion in capital expenditure plans in the US by innovative pharma companies over recent months.

India's Position as the 'Pharmacy of the World' at Risk

India, known as the 'pharmacy of the world,' has established a strong presence in the generics market through lower production costs. However, Trump's directives aim to bring drug manufacturing, including APIs and KSMs, back to the US, threatening India's cost advantage.

Increased Regulatory Hurdles for Indian Pharma Companies

The orders also propose faster approvals for domestic plants, stricter checks on foreign facilities, and higher fees for overseas manufacturers. Additionally, the requirement to disclose API origins could further complicate matters for Indian firms reliant on Chinese ingredients.

A Shift in Policy with Global Implications

These executive actions are part of a broader biosecurity agenda, including restrictions on research funding for virus pathogenicity enhancement. The long-term impact remains uncertain, but the policy shift could significantly influence the worldwide pharmaceutical supply chain.