President Donald Trump has unveiled intentions to implement tariffs of 25% or more on imports of semiconductors and pharmaceuticals, a decision that could have profound repercussions for India’s pharmaceutical sector. These tariffs, which are expected to escalate over the coming year, target an industry that provides nearly half of the generic prescriptions in the United States and recorded $8.7 billion in exports to the U.S. during the fiscal year 2024. Indian pharmaceutical firms, which are heavily dependent on the U.S. market, may encounter rising costs that could ultimately be passed on to consumers.
For instance, Sun Pharmaceutical, the largest drug manufacturer in India, derived 32% of its revenue from the U.S. in 2024, with MD Dilip Shanghvi indicating that the additional costs would likely be borne by consumers. Dr. Reddy’s Laboratories, which saw 47% of its sales from North America, primarily through oncology and immunology generics, is looking towards forthcoming generic weight-loss medications for future expansion. Cipla, earning 30% of its revenue from North America, ranks among the top 15 U.S. prescription drug suppliers, focusing on respiratory and oncology generics. Biocon, with the U.S. as its largest market contributing 44% of its revenue, experiences high demand for biosimilars that treat conditions such as cancer and arthritis. Lupin’s North American sales constituted 37% of its revenue, reflecting a 30% year-over-year increase driven by strong demand for respiratory and antiretroviral generics. Glenmark Pharma, with North America accounting for 26% of its revenue, is concentrating on expanding its respiratory drug offerings. Lastly, Zydus, which generates 46% of its total revenue from the U.S., distributes over 200 generic products in this market.
