30-04-2025
‘Never Exported To Pakistan': Wockhardt's Khorakiwala Downplays Impact Of Trade Freeze Between Neighbours
Talking about the impact of Donald Trump's tariff terror on Indian pharma companies, Khorakiwala believes that Indian companies need to form new strategies and look for new markets
The ongoing freeze in India-Pakistan trade ties is expected to have minimal impact on the Indian pharmaceutical sector as most companies, including most of the country's largest drug-makers, have never exported to Pakistan, Habil Khorakiwala, chairman of Wockhardt, told News18.
'We, in our 50-year history, have never exported drugs to Pakistan, and most Indian companies don't export there as the size of the market is unattractive, and a host of restrictions make the business restrictive," Khorakiwala, founder chairman of the Mumbai-headquartered firm told News18 in an exclusive interview. He was responding to a question on the growing strain on bilateral trade relations between India and Pakistan triggered by the terror attack in Kashmir's Pahalgam.
'Hence, trade snapping may not mean anything to us in pharma."
Talking about the impact of US President Donald Trump's tariff terror on Indian pharma companies, Khorakiwala believes that Indian companies need to form new strategies and look for new markets. However, he said, 'Overall, any tariffs on pharmaceutical products would prove counter-productive for American consumers and healthcare providers."
Headquartered in Mumbai, Wockhardt Limited is globally making headlines with its novel antibiotic, Zaynich, which has shown extraordinary efficacy against multidrug-resistant gram-negative infections.
While on one end, the company is planning to apply for US FDA approval for Zaynich in the next two to three months, on the other end, it has decided to exit the US generic business and focus only on specialty drugs. The company has steered its focus towards 'emerging markets' with its segment of biologics and insulin products in the 'anti-diabetic' or 'anti-obesity, weight loss' product category.
BSE-listed Wockhardt Group operates in several fields, including pharmaceuticals, biotechnology, active pharmaceutical ingredients (APIs), and super-specialty hospitals.
'We offer a range of products, including generic drugs, bulk drugs, along with our biologics drug portfolio," he said, adding: 'We have a different plan to diversify. While we have decided to exit the generic business in the US market, we will focus on the emerging markets, leading with our biologics drug portfolio."
The company plans to focus on its biologics portfolio, especially consisting of anti-diabetic medicines.
'We will remain in the anti-diabetic space in biologics and focus on it," he said, sharing examples of top pharma companies such as Eli Lilly and Novo Nordisk withdrawing insulin brands Basaglar and Human Mixtard from the Indian market, hence creating opportunities for other players.
'Diabetic products are in focus, along with anti-obesity or weight loss drugs. We will introduce new products, but we have decided to remain in the emerging markets. There is a huge market opportunity, and competition is also limited."
The company is known as the first mover in biotechnology in India, and it claims to be the first Asian company and the third in the world to synthesise, manufacture and successfully market recombinant insulin.
Effect Of Trump Tariff
Responding to the possibility of impact on the Indian pharma due to imposition of tariffs led by Trump, the Wockhardt chairman said, 'There is so much uncertainty and things are changing every day. However, in our industry, it's not easy to switch supplies."
He highlighted that India supplies 40 per cent of total prescription drugs to the US and hence, India is not a marginal player. 'We are a very, very significant player, maybe the largest one supplying to the US."
Khorakiwala estimates that the majority of the price surge will be borne by the consumer or healthcare providers. 'Partly by the government and partly by the private sector… 90 per cent of the prices of medicines are borne by insurance companies. The entire approach could end up being ineffective for the US."
He highlighted that the technical procedures for switching medications are not easy as the USFDA approval process takes several years, maybe up to two to three years.
'Unlike other areas, here you cannot substitute one drug for another. Also, drug shortages have been a major issue in the US, and this move may also lead to some kind of drug shortages."
What should Indian companies do now? Industry veteran Khorakiwala, who founded Wockhardt in 1967, advises Indian drug-makers to focus on other markets beyond the US. 'The US is a big advantage for Indian companies as it is a very important market both in terms of size and price points. However, because of this advantage, I think Indian companies are not focused enough on the other possible markets and geographical expansion."
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tags :
bse donald trump Pahalgam attack pakistan US FDA Wockhardt
Location :
New Delhi, India, India
First Published:
April 30, 2025, 08:49 IST
