Latest news with #IndianPharmaceuticalAlliance
Time of India
3 days ago
- Health
- Time of India
Pharma body opposes entry curbs on medical representatives, seeks rethink
New Delhi: The Indian Pharmaceutical Alliance (IPA), IPA, a lobby group which represents large domestic pharmaceutical companies, has raised concerns over the government's recent mandate that restricts the entry of medical representatives (MRs) into hospitals run by the Central government. The IPA has argued against the new order saying it disrupts the essential interface between pharma companies and healthcare providers and has far-reaching implications for public health, innovation, healthcare delivery , and patient care. It has urged the health ministry to have a balanced, structured, and transparent engagement model, allocating days and time for interaction. In a representation to the health ministry and department of pharmaceutical (DoP), IPA has said the diktat will impact of growth of pharmaceutical sector and result in job losses of medical representatives. "The pharmaceutical sector is knowledge driven with significant rapid advancements. Industry interactions with doctors are fundamental for knowledge development and facilitating better patient care. MRs play pivotal role for knowledge dissemination. Live Events "Guidelines have been laid between medical practitioner and industry interactions in Uniform Code of Marketing Practices and these interactions can be structured in hospital settings by allocating days and time for interactions," said Sudarshan Jain, secretary general, IPA. As ET reported last week, the Directorate General of Health Services (DGHS) has instructed all central government hospitals not to permit medical representatives in the hospital premises. Raising concerns, the IPA said that their engagement with doctors ensures timely dissemination of product-related information, covering latest advancements and access of medicines to patients. It also helps during Introduction of new therapies like complex generics and novel biologics. They also play a pivotal role in sharing clinical trial data and global research developments, supporting evidence-based practice. Economic Times WhatsApp channel )
Indian Express
14-05-2025
- Business
- Indian Express
Will Trump's drug price order hit Indian generics? Here's what you need to know
While it still isn't clear how US President Donald Trump's new executive order on reducing prices of prescription drugs by 30 per cent to 80 per cent will play out, Indian pharmaceutical manufacturers say it is unlikely to hurt the market for Indian generics in the country. Trump said he would introduce a 'most favoured nation' (MFN) policy whereby pharma majors would have to bring down drug prices for American patients in line 'with comparably developed nations'. This, the Indian manufacturers say, will affect the patented drugs manufactured by big pharmaceutical giants. 'A friend of mine, a businessman… seriously overweight and he takes the fat shot drug. And, he called me up… and said president can I ask you a question? … I am in London and I just paid USD 88 and in New York I pay USD 1,300. What … is going on?' said Trump while announcing the measure. What does the executive order say? The executive order says that it will address 'global freeloading' and promises 'additional aggressive action' if manufacturers fail to offer the most-favoured-nation lowest prices to American patients. 'The inflated prices in the United States fuel global innovation while foreign health systems get a free ride…Americans will no longer be forced to pay almost three times more for the exact same medicines, often made in the exact same factories. As the largest purchaser of pharmaceuticals, Americans should get the best deal,' the executive order said. It says that the most-favoured-nation price targets will be communicated to the pharmaceutical manufacturers within 30 days. If that does not happen, the executive order adds, a plan would be made to impose it. Additionally, the executive order says that the Secretary of Health and Human Services shall facilitate direct-to-consumer purchasing programmes for pharmaceutical manufacturers who sell their products to American patients at the most-favoured-nation price. 'Most Indian companies sell products in the US through established distributors. They do not have distribution channels that will take the product to the nearby drug store,' said an expert from the pharmaceutical sector, on condition of anonymity. Will the move affect Indian manufacturers? It is unlikely. Almost all drugs sold by Indian manufacturers in the US are off-patent generics. 'The sale of these products is highly competitive and the prices offered are likely low anyway. It seems that the prices of only those drugs that are still under patent will be affected,' said Viranchi Shah from the Indian Drug Manufacturers Association. Sudarshan Jain, secretary-general, Indian Pharmaceutical Alliance, said: '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. Further details on implementation mechanisms will bring more clarity.' While there may be certain patented products that may be exported from India — through licensing agreements with global companies — it is a very small proportion of drugs exported from India. Importantly, the focus is on cutting costs after manufacturing in the supply chain. Hence, it will not affect any precursor compounds that India may be manufacturing, experts say. How much does India export to the United States? Nearly 47 per cent of all generics prescribed in the US are manufactured here. More than half of the prescriptions of five of the ten most common therapy areas — hypertension, mental health, medicines to control lipids, medicines for nervous system disorders, and anti-ulcer drugs — were supplied by India, according to data from IQVIA. The US is also the biggest importer of Indian drugs, accounting for 31.3 per cent of total Indian pharmaceutical export by value in 2024. India exported pharmaceuticals worth $ 8.7 billion to the US. Anonna Dutt is a Principal Correspondent who writes primarily on health at the Indian Express. She reports on myriad topics ranging from the growing burden of non-communicable diseases such as diabetes and hypertension to the problems with pervasive infectious conditions. She reported on the government's management of the Covid-19 pandemic and closely followed the vaccination programme. Her stories have resulted in the city government investing in high-end tests for the poor and acknowledging errors in their official reports. Dutt also takes a keen interest in the country's space programme and has written on key missions like Chandrayaan 2 and 3, Aditya L1, and Gaganyaan. She was among the first batch of eleven media fellows with RBM Partnership to End Malaria. She was also selected to participate in the short-term programme on early childhood reporting at Columbia University's Dart Centre. Dutt has a Bachelor's Degree from the Symbiosis Institute of Media and Communication, Pune and a PG Diploma from the Asian College of Journalism, Chennai. She started her reporting career with the Hindustan Times. When not at work, she tries to appease the Duolingo owl with her French skills and sometimes takes to the dance floor. ... Read More
India Gazette
13-05-2025
- Business
- India Gazette
Generics medicine industry unlikely to be impacted by Trump order: Indian Pharmaceutical Alliance
New Delhi [India], May 13 (ANI): 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. (ANI)
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Business Standard
13-05-2025
- Business
- Business Standard
Generic industry unlikely to be affected by Trump's EO: Indian drug cos
A fresh US executive order (EO) which seeks to bring down prices of prescription drugs in the country by up to 90 per cent -- on par with other developed nations -- will affect innovator companies, while sparing the Indian generic drug makers in the short term. US President Donald Trump signed the EO on Monday, directing the US Trade Representative and the Secretary of Commerce to act against foreign countries that 'purposefully and unfairly undercut market prices', driving price hikes in the US. Indian Pharmaceutical Alliance (IPA), which represents large pharma firms in the country that account for nearly 80 per cent of India's pharma exports by value, felt that the generics industry is unlikely to be impacted as a result of this US move. The EO also instructs the administration to communicate price targets to pharma manufacturers, asserting that America, the world's largest purchaser and funder of prescription drugs, should get the best deal. The Secretary of Health and Human Services will set up a mechanism allowing American patients to buy drugs directly from manufacturers at a Most Favoured Nation (MFN) price, bypassing middlemen. Trump had previously said the move would lead to higher drug prices in other countries as part of a broader global price alignment. The Presidential EO noted that the US has less than 5 per cent of the world's population but funds roughly 75 per cent of global pharma profits. Sudarshan Jain, Secretary General, IPA said, 'The Executive Order issued by the US 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. Innovator companies are expected to be affected, with a 30-day window to align their US prices with Most-Favoured-Nation (MFN) pricing.' Jain added that 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. The generics industry plays a pivotal role in ensuring medicines remain affordable and accessible. Further details on implementation mechanisms will bring more clarity,' he said. India Ratings and Research (Ind-Ra) felt once implemented the EO will have limited near-term impact on the Indian pharma companies, but it may have a bearing on their long-term capital allocation strategies. 'While we do not expect a material immediate impact on the US generics business of Indian pharma companies, its revenue growth and capital allocation strategies may likely be impacted, if the executive order gets implemented. Generic price realisations in the US generic market may not be the highest in the world. We expect contract development and manufacturing organisation (CDMO) players to benefit,' says Nishith Sanghvi, Director, Corporates, Ind-Ra. However, the ratings agency felt that long-term headwinds for generics were likely. It said they do not expect a material immediate impact on the US generics business of Indian pharma companies. However, the long-term revenue growth and capital allocation strategies may be impacted, given the opportunity size may shrink as the generic business derives their market potential from the sales of prescription products. 'The same shall depend on the scale of price decline in those molecules/therapies and companies' R&D focus areas. Indian pharma companies are primarily involved in generic drugs which are 5 per cent of the prescription drugs cost and over 80 per cent cheaper for insurance payers, compared to prescription drugs, in our view. However, Indian CDMO players may benefit, given the cost arbitrage of manufacturing in lower cost destinations such as India and strong chemistry skills,' it said. Price realisations for generic products may not be the highest in the US generic market in relation to other geographies, analysts felt. Also, price comparisons in various markets may have to be seen in line with the regulatory set up and payer profile in the respective geographies which may have a bearing on the pricing in that market. Analysts also highlighted that there was limited scope to further reduce generic prices. India-Ratings' analysis of 15 listed pharma companies with exposure to the US highlights heavy dependence on the US market at around 35 per cent of the total revenue. 'While the share of US sales had declined during FY21-FY22, it has rebounded markedly during the past three years, leading to an improvement in Ebitda margins. Key generic players have exited the market in the past leading to drug shortages when pricing became non-remunerative. Demand-supply dynamics have a huge bearing on generic pricing for the US market,' it said. This assumes significance in the context of Medicare (federal health insurance) costs in the US going up. An April report by IQVIA noted that more Medicare (federal health insurance) patients have been facing annual drug costs above $2,000 as prices continue to rise. Net medicine spending increased by $50 billion (11.4 per cent) in aggregate, from $437 billion in 2023 to $487 billion in 2024.
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Business Standard
13-05-2025
- Business
- Business Standard
Trump drug pricing order to affect innovators, generics spared: IPA
US President Donald Trump signing an executive order (EO) to bring the prices of prescription drugs in America in line with those paid by comparable nations is likely to affect innovator companies, said the Indian Pharmaceutical Alliance (IPA). IPA, which represents large pharma firms in the country that account for nearly 80 per cent of India's pharma exports by value, felt that the generics industry is unlikely to be impacted as a result of this US move. Trump signed the executive order on Monday, directing the US Trade Representative and the Secretary of Commerce to act against foreign countries that purposefully and unfairly undercut market prices, driving price hikes in the US. The EO also instructs the administration to communicate price targets to pharma manufacturers, asserting that America, the world's largest purchaser and funder of prescription drugs, should get the best deal. The Secretary of Health and Human Services will set up a mechanism allowing American patients to buy drugs directly from manufacturers at a Most Favoured Nation (MFN) price, bypassing middlemen. Trump had previously said the move would lead to higher drug prices in other countries as part of a broader global price alignment. According to recent data, Americans pay over three times what other OECD countries pay for brand-name drugs. The Presidential EO noted that the US has less than 5 per cent of the world's population but funds roughly 75 per cent of global pharma profits. Sudarshan Jain, Secretary General, IPA, said: "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. Innovator companies are expected to be affected, with a 30-day window to align their US prices with Most-Favoured-Nation (MFN) pricing." Jain added that 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. The generics industry plays a pivotal role in ensuring medicines remain affordable and accessible. Further details on implementation mechanisms will bring more clarity," he said. India Ratings and Research (Ind-Ra) felt that once implemented, the EO will have limited near-term impact on Indian pharma companies, but it may influence their long-term capital allocation strategies. 'While we do not expect a material immediate impact on the US generics business of Indian pharma companies, its revenue growth and capital allocation strategies may likely be impacted, if the executive order gets implemented. Generic price realisations in the US generic market may not be the highest in the world. We expect contract development and manufacturing organisation (CDMO) players to benefit,' said Nishith Sanghvi, Director, Corporates, Ind-Ra. However, the ratings agency felt that long-term headwinds for generics are likely. It said it does not expect a material immediate impact on the US generics business of Indian pharma companies. However, long-term revenue growth and capital allocation strategies may be impacted, given the opportunity size may shrink as the generic business derives its market potential from the sales of prescription products. "The same shall depend on the scale of price decline in those molecules/therapies and companies' R&D focus areas. Indian pharma companies are primarily involved in generic drugs which are 5 per cent of the prescription drugs cost and over 80 per cent cheaper for insurance payors, compared to prescription drugs, in our view. However, Indian CDMO players may benefit, given the cost arbitrage of manufacturing in lower-cost destinations such as India and strong chemistry skills," it said. Price realisations for generic products may not be the highest in the US generic market in relation to other geographies, analysts felt. Also, price comparisons in various markets may have to be seen in line with the regulatory set-up and payor profile in the respective geographies, which may have a bearing on the pricing in that market. Analysts also highlighted that there was limited scope to further reduce generic prices. India Ratings' analysis of 15 listed pharma companies with exposure to the US highlights heavy dependence on the US market at around 35 per cent of total revenue. "While the share of US sales had declined during FY21–FY22, it has rebounded markedly during the past three years, leading to an improvement in EBITDA margins. Key generic players have exited the market in the past, leading to drug shortages when pricing became non-remunerative. Demand-supply dynamics have a huge bearing on generic pricing for the US market," it said. This assumes significance in the context of Medicare (federal health insurance) costs in the US going up. An April report by IQVIA noted that more Medicare patients have been facing annual drug costs above $2,000 as prices continue to rise. Net medicine spending increased by $50 billion (11.4 per cent) in aggregate, from $437 billion in 2023 to $487 billion in 2024.
