Page 11 - ITLN May-June 2025

He added, “The Indian pharma
industry, especially the top five, has a
solid presence in the US and will not
let it go easily.”
India's pharmaceutical trade
remains deeply intertwined with the US
market. “India’s predominant trade in
pharma is with the US,” Bhattacharya
affirmed. “The US procures most of its
vaccines and generic drugs from India.
The cost of procurement for these two
is low because India has been doing
this for quite some time.”
While India is a powerhouse in
formulation manufacturing, raw
material dependency remains a
concern. “Most of these APIs and raw
materials are out of China, even in the
case of India,” Bhattacharya explained.
What should Indian “India is manufacturing, but has very
pharma companies focus limited capability.”
on to stay resilient? “Market As the market braces for potential
diversification is key,” Shetty disruptions, Bhattacharya noted that
stressed. “Companies need to niche, high-value drug segments are
keep expanding their presence somewhat insulated.
in new geographies and not be “That’s very low,” he said about
overly dependent on one market, the impact on niche therapies.
however lucrative it may be.” “Predominantly, the US is the
He also emphasised the patent holder, and they outsource
importance of R&D and operational manufacturing or technology transfer
excellence. “Investing in R&D, to contract drug manufacturers in
focusing on complex and niche India. Clinical trials have slowed
products, and ensuring regulatory down because the drug market is very
compliance will help Indian pharma The US procures most of speculative at this point. People are not
companies stay competitive.” its vaccines and generic going to invest new money right now;
Lastly, he noted, “Building robust whatever is ongoing will continue, but
supply chains and business continuity drugs from India. The new site initiations and new processes
plans is also critical, especially given cost of procurement for have slowed down.”
the current geopolitical uncertainties.” these two is low because Marken’s South APAC chief observed
Arnab Bhattacharya, Senior Regional India has been doing this a cooling in business sentiment post-
Director – South APAC at Marken, shared for quite some time. tariff announcements. “It’s stable. It’s
his insights on the evolving scenario not declining, but the growth we used to
and the implications for Indian pharma. Arnab Bhattacharya see month after month since January
Commenting on US President Donald Marken flatlined. People are not investing in
Trump's proposed tariffs on Indian new R&D, but business is as usual, not
pharmaceutical exports, Bhattacharya significantly down.”
pointed out the uncertainty surrounding Bhattacharya is also the Country As the global trade chessboard
the announcement. “The US is trying Manager, India, at UPS Healthcare. is redrawn, Indian exporters are
to figure out what the country can do Marken, a UPS company, is a global preparing for both pressure and
domestically and what needs to be leader in clinical trial logistics, possibility. Tariffs may threaten profit
sourced from other countries. The cost providing specialised supply chain margins, but strategic strengths—
of procurement for drugs manufactured solutions for the pharmaceutical and like cost-effective manufacturing,
in India is competitive. If the US tries to life sciences industries, including high-value components, and reliable
replicate this domestically, costs will go direct-to-patient services and pharmaceutical production—position
up at least three times.” biological sample shipments. India to deepen its global footprint.
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