The New Indian Express ·
More Indian pharma exporters may follow Sun Pharma on US MFN pricing to bypass tariff
Following Sun Pharmaceutical’s move, several large Indian pharmaceutical exporters are likely to enter into agreements with the US to offer Most Favoured Nation (MFN) pricing, as they seek to minimise challenges arising from potential Section 232 tariffs and other hurdles posed by the powerful US pharmaceutical distribution lobby.
Indian pharmaceutical exporters have been grappling with a twin challenge in the US market. While the threat of Section 232 tariffs continues to loom over drug exporters, profit margins have also come under pressure amid growing bargaining power among distributors and the absence of long-term annual contracts.
“We are likely to see more large Indian pharmaceutical companies adopt such models to protect value and support the long-term sustainability of their US businesses. Maintaining a USFDA-approved site is also expensive, making efficient distribution and deeper market integration even more important,” said Namit Joshi, chairman, Pharmaceuticals Export Promotion Council of India (Pharmexcil).
