Indian pharmaceutical companies are exploring various strategies to overcome global challenges, including inward-looking policies, tariffs from the U.S., and geopolitical uncertainties. Industry leaders suggest global collaboration and differentiated manufacturing models as key approaches for a stable future.
Call for a Secure Global Supply Chain
Zydus Lifesciences Chairman Pankaj R. Patel emphasized the need for international collaboration to build a secure and stable supply chain. Speaking at the Quality Summit organized by the Indian Pharmaceutical Alliance (IPA), he highlighted present-day concerns and urged drugmakers to adopt new technologies. Citing China’s advancements in artificial intelligence (AI), Patel acknowledged the challenges but insisted that progress is achievable.
Expanding Affordable Medicine Access
Patel also stressed the role of generic drugmakers in making medicines affordable. He pointed to biological and biosimilar drugs as the next frontier, following the success of generics in small-molecule drugs. Using CAR-T therapy in India as an example, he demonstrated how competition can significantly lower costs, making advanced treatments more accessible.
Industry’s Evolving Global Outlook
Lupin Managing Director Nilesh Gupta noted the Indian pharmaceutical industry’s remarkable growth, surpassing $50 billion over the past decade. Sun Pharma Chairman and Managing Director Dilip Shanghvi added that domestic drugmakers are now more globally focused, competing on international platforms and partnering with overseas firms.
Rethinking Manufacturing Strategies
Cipla’s Managing Director and Global CEO Umang Vohra discussed the need for a differentiated manufacturing model. He suggested setting up small pilot plants in key regions while supporting them with larger manufacturing units elsewhere. He also emphasized the importance of placing research centers closer to manufacturing plants to improve technology transfer. Additionally, he highlighted the growing demand for skilled professionals who can work across different geographies.
Navigating U.S. Trade Policies
The industry leaders acknowledged the uncertainties posed by former U.S. President Donald Trump’s shifting policies, including potential tariffs on pharmaceuticals. However, they noted that it is too early to determine a concrete response.
They pointed out that India’s tariffs on imported drugs range from 0-12%, with some life-saving medicines exempt from tariffs. Furthermore, they argued that U.S. tariffs on pharmaceuticals are counterproductive, as affordable generic drugs are essential for reducing healthcare costs.
As reported by thehindubusinessline.com, as Indian drugmakers continue to expand globally, they are focusing on innovation, collaboration, and strategic planning to ensure long-term growth and stability.
