U.S. President Donald Trump announced a 59% reduction in prescription drug prices and unveiled a new pharmaceutical policy aimed at enabling direct sales to American citizens at the most favoured nation (MFN) price.
The tariff imposed by the U.S. government is expected to push pharma companies to move their R&D centres to low-cost destinations like India, leading to a shift towards AI adoption in R&D processes for efficiency and speed.
The tariffs could hinder critical R&D efforts in the Indian pharmaceutical sector, impacting investments in complex generics and biosimilars. This may slow down the development of essential pharmaceutical products that require significant time and investment.
Indian pharmaceutical companies are exploring strategies to adapt to market dynamics, including cost optimization, automation, local raw material sourcing, and global expansion to mitigate risks posed by U.S. tariffs and ensure long-term resilience.