Domestic pharmaceutical companies are considering a variety of strategies, such as global collaborations and new manufacturing models, to navigate the challenges posed by inward-looking policies and tariffs, particularly from the US, as well as other geopolitical issues.
Pankaj R Patel, Chairman of Zydus Lifesciences, advocated for international collaboration to establish a stable and secure supply chain, especially in light of current global uncertainties. He also encouraged drug manufacturers to invest in new technologies, referencing China’s advancements in artificial intelligence, stating that while the path may be challenging, it is not insurmountable.
Patel emphasized the significant role that generic drug manufacturers play in making medicines more affordable, predicting that they would also apply their expertise to emerging opportunities like biological and biosimilar drugs, just as they have with traditional small-molecule medications. He noted that the price of CAR-T therapies in India is significantly lower than the global market, underscoring that competition is key to making such treatments more accessible.
During the closing session of the Quality Summit organized by the Indian Pharmaceutical Alliance (IPA), leaders from prominent companies, including Sun Pharma, Lupin, and Cipla, shared insights on the industry’s future. Nilesh Gupta, MD of Lupin, highlighted the sector’s growth over the past decade, which has seen it evolve into a $50 billion industry, and expressed optimism that the next decade would witness further innovation.
Dilip Shanghvi, Chairman and Managing Director of Sun Pharma, remarked that domestic drug producers are adopting a more global approach, engaging in international competition and collaboration with worldwide partners.
Addressing the challenges faced, Umang Vohra, Cipla’s MD and Global CEO, suggested that future manufacturing might necessitate a differentiated model, potentially involving smaller pilot plants supported by larger manufacturing facilities elsewhere. He also advocated for relocating research centers closer to manufacturing sites to enhance technology transfer, while stressing the need for a skilled workforce adept at operating across different regions.
Regarding the uncertainty stemming from US President Trump’s fluctuating policies, including potential tariffs on pharmaceuticals, industry leaders indicated that it was too early to formulate a definitive strategy for that market. They noted that tariffs on imported medicines in India range from 0-12 percent, with some essential drugs exempt from tariffs. They further argued that imposing tariffs on medications in the US is counterproductive, as affordable generic drugs are crucial for reducing healthcare costs.
