Trump announces cut in drug prices, Indian pharma sector likely to be impacted

Washington (The Uttam Hindu): US President Donald Trump has announced a major reduction in medicine prices, a move expected to influence the global pharmaceutical market, including India’s generic drug export sector. The United States is now moving towards setting drug prices based on international comparisons.

Speaking on drug pricing, Trump said that people in the US will no longer pay more than the lowest price charged anywhere in the world for the same medicine. He stated, “You will get the price of the most favoured nations.” The announcement was made in the presence of senior officials from the healthcare sector and multinational pharmaceutical companies.

Trump said that for decades, American citizens have been forced to buy the world’s most expensive medicines. He claimed that pharmaceutical companies have agreed to steep price cuts on several major drugs. According to him, prices of some medicines could be reduced by 300 to 700 percent.

He also said that the US would use tariffs to pressure foreign governments into lowering drug prices. Trump claimed that soon, medicine prices in the US would be among the lowest in developed countries, ensuring Americans get the cheapest global rates.

Trump linked this policy to boosting domestic drug manufacturing, saying several companies are shifting production to the US and setting up new facilities. This announcement could affect India, which is one of the world’s largest producers of generic medicines and a key supplier of affordable drugs to the US, especially for long-term and chronic treatments.

India is known for having some of the lowest drug prices globally. Because of this, any move by the US to benchmark drug prices internationally is being closely monitored by Indian pharmaceutical exporters, as the American market is crucial for India’s pharma industry.

It is worth noting that high drug prices in the US have long been a subject of debate. Pharmaceutical companies argue that higher prices fund research and innovation, while critics say the burden of expensive medicines ultimately falls on ordinary citizens.