New Delhi [India], May 13 : India's generics medicine industry is unlikely to be impacted by President Donald Trump's move to slash drug prices in the US drastically, said Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance (IPA).
On Monday, President Trump signed an Executive Order, which he termed as one of the "most consequential Executive Orders" in the country's history. The order directed pharmaceutical companies to lower the prices of their medicines to align with what other countries pay for such prescription medicines.
Trump gave pharmaceutical companies a 30-day deadline to cut costs or face action.
"The generics industry is unlikely to be impacted, as it operates on razor-thin margins. In the US, the generics industry represents 90 per cent of prescription volumes while accounting for only 13 per cent of the market value," Sudarshan Jain said.
The generics industry plays a pivotal role in ensuring medicines remain affordable and accessible.
"Further details on implementation mechanisms will bring more clarity," Jain added in his brief statement on Tuesday.
The Executive Order issued by the US Government seeks to balance innovation, access and overall healthcare costs.
"Research and development in life sciences demands long-term commitment, substantial investment, and carries high risk. The Order emphasises that the cost of the innovation should be shared equitably among all stakeholders," Jain said, arguing that the innovator companies are expected to be affected with a 30-day window to align their US prices with Most-Favoured-Nation (MFN) pricing.
Trump has been claiming that for many years, US consumers were paying much higher prices for medicines that are drastically lower in other countries.
The US President claimed that sometimes the medicines purchased by US consumers are five to ten times more expensive than the same drug, manufactured in the exact same laboratory or plant, and by the same company.
"Prescription Drug and Pharmaceutical prices will be REDUCED, almost immediately, by 30 per cent to 80 per cent. They will rise throughout the World in order to equalize and, for the first time in many years, bring FAIRNESS TO AMERICA! I will be instituting a MOST FAVORED NATION'S POLICY whereby the United States will pay the same price as the Nation that pays the lowest price anywhere in the World. Our Country will finally be treated fairly, and our citizens Healthcare Costs will be reduced by numbers never even thought of before. Additionally, on top of everything else, the United States will save TRILLIONS OF DOLLARS,"
Trump wrote on X, hours before signing the executive order.
President Trump has been focusing particularly on reducing Americans' cost of living ever since he stepped into the White House for the second time.
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