Indian Pharma Navigates Uncertainty Amid US Tariffs and Price Pressures
The Indian pharmaceutical industry faces challenges due to US tariffs, requiring price adjustments and strategic site and intellectual property moves. Companies are exploring new growth areas while managing margin pressures in the US. The sector remains hopeful for long-term growth opportunities despite current uncertainties.
- Country:
- India
In response to ongoing US tariffs, the Indian pharmaceutical industry is adjusting prices and transferring sites and intellectual property, as reported by Systematix Research. The report outlines that the current tariff climate has deterred companies from expanding capacities in the US market.
Despite some raw material prices falling, particularly in antibiotics, customer destocking has stabilized generic API prices. While firms cautiously explore new growth and product launch opportunities, demand for anti-infectives remains subdued.
The report highlights strong RFPs for custom synthesis and CDMO services, with companies keen on GLP-1 opportunities. Earnings for 1QFY26 showed mixed results, with Sun Pharma surpassing expectations and Pfizer maintaining growth. In contrast, Orchid Pharma and Dr. Reddy's Laboratories faced challenges due to inventory and margin pressures.
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