US tariffs on imported branded and patented medicines: ‘No major disruptions’ say Himachal pharmaceuticals producing generics

The tariff announced by US President Donald Trump will take effect from October 1 — the move that has triggered reactions from global pharmaceutical hubs.

The Vice-Chairman of Confederation of Indian Industry (CII Himachal) and Executive Director of Morepen Laboratories in Solan, Sanjay Suri, said, “More than 95 per cent of the pharmaceutical companies located in Baddi, Nalagarh, Kala Amb and Paonta Sahib are engaged in producing generic medicines.” Suri also said that the industry will not face any major disruptions as the tariffs are only on branded and patented drugs.

He told The Indian Express, “Generic medicines are those whose patent protection has already expired, making them widely available and affordable.”

Suri also emphasised the significance of India’s role in supplying cost-effective generic medicines to global markets. “India is one of the largest generic medicines exporters to the US. American healthcare cannot afford to impose high tariffs on generics, as that would push up drug prices and burden patients.”

However, Chairman of the Himachal Drug Manufacturers’ Association Rajesh Gupta said, “While it is true that generic medicines have been exempted, the distinction between generic and branded or patented drugs is not always straightforward.”

He said that although certain companies manufacture branded medicines outside Himachal, in the state “these companies manufactured generic medicines”. Therefore, there is a need to study the notification with absolute clarity before arriving at any firm conclusion, Gupta said.

With nearly 580 pharmaceutical companies in the state, Himachal has emerged as one of Asia’s largest medicine manufacturing hubs.

The Baddi-Nalagarh-Barotiwala belt in Solan accounts for nearly 79 per cent of the total units, while the remaining are concentrated in Sirmour’s Kala Amb and Paonta Sahib.

Collectively, the sector contributes significantly to India’s pharmaceutical exports, with Himachal’s annual pharma turnover estimated at around Rs 40,000 crore.

Industry observers say that the state’s pharma sector has shown remarkable resilience in the face of global uncertainties. The presence of leading companies with a strong base of medium and small-scale manufacturers, and consistent demand for generics have ensured steady growth.

Experts note that unless future US policies extend tariffs to generics, Himachal’s pharmaceutical industry will remain insulated from the immediate impact.