Now Pharma Inc looks for cure as Trump delivers dose of anxiety

Mumbai: The relief at being spared from reciprocal tariffs did not last long for India's drug makers, with US President Donald Trump declaring that pharma tariffs are going to come in at levels "you haven't really seen before". While the situation remains fluid with companies on a wait-and-watch mode, industry insiders said they are mulling various options to deal with potential future tariffs. Some are looking at alternative markets such as Europe, Latin America, Africa and other emerging markets to export their generic formulations to offset potential business impact.

"While the US is an important and large market, if need be, some companies may even look at other markets," said a senior industry executive, who did not want to be named. "Currently, the situation is very volatile and uncertain, but companies are bracing up for any eventuality and companies will be forced to consider alternative markets if the tariff barrier becomes insurmountable," said the executive.

The BSE Healthcare Index, which rose 2% Thursday after the first set of industries on Trump's list for reciprocal tariff did not include pharma, fell 3.2% Friday.

Shares of large generic drug makers and contract manufacturing organisations such as Dr Reddy's, Zydus Lifesciences, Lupin, Gland Pharma, Biocon, Sun Pharma and Cipla closed the day's trading 3-6% lower. These companies get a third to more than half of their revenue from the US.

Trump, speaking to reporters aboard Air Force One Thursday, signalled that his administration was reviewing potential tariffs on pharmaceuticals. The announcement may come in the "near future, and not too distant future", he said.