Tariffs Alone Will Not Produce Sustainable Generic Medicine In US: IPA
She also said that those reforms should include greater transparency and accountability for the upstream buying groups that control the acquisition of about 90 per cent of generic medicines in the US retail market; and action against practices that needlessly delay generic competition beyond legitimate patent and statutory exclusivity periods, at the expense of American families and taxpayers
New Delhi: The Indian Pharmaceutical Alliance (IPA) on Wednesday said that tariffs alone will not help build a sustainable generic drug manufacturing base in the US, asserting that broader reforms are needed to ensure fair pricing, supply chain stability and long-term investments in the sector.
The IPA, comprising 23 leading Indian research-based generic pharmaceutical companies, issued this statement following US President Donald Trump's announcement that imported generic drugs will remain tariff-free for two years before tariffs rise to 100 percent and 200 percent later.
Trump has said that this is done to reshore generic pharmaceutical production into America, with a penalty to those companies that decide not to build plants and equipment within the stated time frame given to them. “India is a trusted and indispensable affordable medicine partner to the US, supplying nearly 50 per cent of the generic medicines used by America's healthcare system,” said Kathleen Jaeger, US Spokesperson for the IPA.
She further said that the two-year tariff-free transition period provides an important opportunity for the US and companies to develop a practical pathway that protects American patients, restores a sustainable US generic medicines sector and advances supply-chain resilience.
“Tariffs alone, however, will not produce sustainable generic medicine onshoring. A resilient supply chain cannot be built on untoward market dynamics that systematically drive generic prices below sustainable levels, contribute to shortages and discourage investment in US manufacturing," she said, adding that major new domestic investments are predicated on US reforms that restore fairness, transparency and long-term stability to the US generic medicines market.
She also said that those reforms should include greater transparency and accountability for the upstream buying groups that control the acquisition of about 90 per cent of generic medicines in the US retail market; and action against practices that needlessly delay generic competition beyond legitimate patent and statutory exclusivity periods, at the expense of American families and taxpayers.
“For the past two years, we have worked constructively with the Trump Administration and other US officials to advance a US-India Affordable Medicines Partnership that strengthens medicine security, expands resilient manufacturing and reduces dependence on countries of concern,” Jaeger added.
Separately, Sudarshan Jain, secretary general, IPA, also said that India has been a trusted partner in ensuring the supply of affordable and quality-assured medicines for American patients. Leading Indian pharmaceutical companies have a major US presence with over 40 facilities, supporting American jobs, investing in manufacturing, research and resilient supply chains.