Trump’s Order Unlikely to Hit Generic Drug Industry: Indian Pharmaceutical Alliance

The generic medicine industry of India is unlikely to be impacted by United States president Donald Trump's decision to slash drug prices in the US drastically, said Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance (IPA).

On Monday, Trump signed an Executive Order, which he referred to as one of the "most consequential Executive Orders" in the country's history.

According to the Executive Order, pharmaceutical companies are required to lower the prices of their medicines to align with what other countries pay for such prescription medicines.

Trump has given a 30-day deadline to pharmaceutical companies to cut costs or face action.

What Does IPA Say?

The Secretary General of the Indian Pharmaceutical Alliance, Sudarshan Jain said, "the generics industry is unlikely to be impacted, as it operates on razor-thin margins. In the US, the generics industry represents 90% of prescription volumes while accounting for only 13% of the market value," an ANI report said.

The generic medicine industry ensures that medicines remain affordable and accessible.

According to Jain, further details on implementation mechanisms will bring more clarity.

Jain added that research and development in life sciences demands long-term commitment, substantial investment, and carries high risk.

According to the Order, the cost of the innovation should be shared equitably among all stakeholders.

Jain said that innovator companies are expected to be affected with a 30-day window to align their US prices with Most Favoured Nation (MFN) pricing.

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