Generic drug costs for US consumers to rise due to overdependence on China: CRS

The overall costs of generic drugs for the US consumers is likely to increase in short-to-medium term because of China being the primary supplier of their ingredients to their global manufacturers, particularly India, a Congressional report has said.

China's role as the primary supplier of Active Pharmaceuticals Ingredients to global manufacturers of the generic pharmaceuticals, particularly in India, is likely to increase overall costs of the generic pharmaceuticals for consumers in the United States in the short-to-medium term, Congressional Research Service or CRS said in one of its latest report.

The outbreak of COVID-19 in India could also affect the availability of generic pharmaceuticals in the United States. India, which supplies approximately 40 percent of generic pharmaceuticals used in the United States, imports nearly 70 percent of its APIs from China, CRS said.

CRS is the independent and bipartisan research wing of the US Congress which prepares periodic reports for lawmakers to take informed decisions. Its report are not an official view point on the Congress,