Indian Drugmakers Smell a Prescription for Profit in Trump’s MFN Drug Pricing Draft

Indian pharmaceutical companies are eyeing US President Donald Trump's new "Most Favoured Nation" (MFN) drug price policy as a potential tailwind, and not a threat. The executive order signed by Trump on May 12 mandates US drug prices to be fixed at the lowest rates that they are charged in the world, impacting generic and patented drugs of big pharma companies. Industry operators like Biocon's Kiran Mazumdar-Shaw and Cipla's Umang Vohra believe that the change would benefit Indian generics and biosimilars, since the policy establishes direct-to-government sales channels and tries to remove intermediaries who have long siphoned off manufacturers' margins.

 

While there is fear that global price re-calibration could compel India to raise domestic drug prices, the generics sector-producing 90% of US prescription volumes-is optimistic. Industry players expect generics to be in favor in the US market under the new regime, which can translate into higher Indian exports and market share.

 

Source: Moneycontrol, Fortune India, Indian Express