Industries from Nagpur district recorded exports of medicines worth more than Rs2,600 crore till June this financial year, a jump of 52% compared to the same period last fiscal. Now, as US imposes 100% tariff on pharmaceuticals, the industry in Nagpur and other parts of region is concerned over the fate of branded generic drugs which are largely made here. The US tariff has spared generic drugs.
However, there is also category of generic drugs which are branded by the manufacturers. This means the manufacturer just puts a seal on the generic product rather than giving it a trade name.
“Now, the question is whether the branded generic drugs exported to the US would also attract a higher tariff,” say industrial sources. In that case, the units would have to remove the brands from the generic drugs they manufacture and sell them as unbranded items.
“However, this requires a tedious process, including obtaining permission from the USFDA, and it remains a concern,” said sources.
Lupin, which has its unit in the Mihan-SEZ, is the only large USFDA licence holder in Vidarbha. The unit is known to be making drugs for blood pressure, kidney ailments and even depression.
Sources said, “The unit largely makes generic drugs. Lupin’s Mihan unit is one of the major facilities of the company.”
Ravleen Khurana of Nitika Pharma says unbranding the generic drugs can be a solution. For that, the manufacturers would have to take permission from the US authorities too.
Khurana said even as he makes excipients, which are additives going as inputs into medicines, he sees a dent in his business due to the tariff. “It would not hamper the direct exports of excipients to the US as the tariff has not been imposed on the inputs. However, a chunk of excipients also goes to larger pharmaceutical companies that make branded generic drugs. If their business is affected, even this may have to take an indirect hit,” says Khurana, who is also the secretary of the International Pharmaceutical Excipients Council in India (IPEC-India). However, Khurana also sees a hope in the crisis with newer markets
being explored.
Sources say the units in Nagpur and other parts of the region either make excipients or active pharmaceutical ingredients (API). The latter is the main input that goes into making a drug formulation. “So far, the input makers are not expected to face any heat,” say industry players.
The majority of the large players have their units in the US too. “There is a likelihood that the production may be shifted to the US, bringing down operations in India,” said industry sources. adding that the small and mid-sized units in Vidarbha largely cater to export markets other than the US.
Anwar Daud of Zim Laboratories said doing away with the brands can help. Daud said his company does not export to the US, which keeps the business safe.
Subodh Deulgaonkar of Snehal Pharma said his company caters to the domestic market, apart from operating as a third-party manufacturer for an exporter to non-US markets.
