Wockhardt looks to exit US generics biz; tariff burden may hit consumers

Wockhardt is planning to exit the US generics business, while American consumers are expected to bear the impact of tariffs

Wockhardt is planning to exit the US generics business. Meanwhile, US consumers will have to bear the burden of tariffs, NDTV Profit reported.

 

Habil Khorakiwala, chairperson of Wockhardt, said, "There is a price pressure on US consumer and healthcare provider in the US. 

 

"As far as Wockhardt  is concerned, we have around 5 per cent presence in the US and we have planned to exit the US generic business," he said.    Commenting on the pharmaceutical industry’s ability to manufacture products in the US, he said, “…will be very, very difficult for pharma to manufacture all products in the US because it will take several years to do that.” 

This comes amid US President Donald Trump's recent announcement on his administration's intention to impose unprecedented tariffs on pharmaceutical imports, signalling a shift from earlier exemptions under his reciprocal tariff policy. 

 

He clarified that pharmaceuticals would be treated as a separate category, with official announcements expected soon. This announcement follows his broader tariff measures, including a 26 per cent duty on Indian imports and a universal 10 per cent tariff on other goods, which were initially exempting pharmaceuticals.

 

Following Trump's remarks, Indian pharmaceutical stocks experienced a sharp decline. The Nifty Pharma Index fell by 4.4 per cent on Friday, erasing gains from the previous day. Major companies like Sun Pharma, Dr. Reddy's, Cipla, and Lupin saw their shares drop between 6 per cent and 10 per cent. Investors were rattled by fears of increased production costs and potential disruptions to the US-India pharmaceutical trade, which accounts for nearly half of US generic drug supplies. 

 

Drug to combat antibiotic-resistance

 

In December last year, Wockhardt introduced a new drug, nafithromycin, designed to treat community-acquired bacterial pneumonia (CABP). The drug is being positioned as a strong alternative to existing antibiotics such as azithromycin, which has seen rising resistance.

 

Nafithromycin represents a major milestone in India’s broader efforts to address the growing challenge of antibiotic and antimicrobial resistance (AMR).

 

Clinical trials of the drug, marketed as Miqnaf, have shown a 96.7 per cent cure rate — substantially better than conventional therapies. It also delivers significantly higher lung concentration — eight times that of azithromycin — and is ten times more potent. The drug is also reported to have fewer adverse effects and reduced chances of drug interactions, potentially improving patient safety.

 

The development of nafithromycin spanned 14 years and involved an investment of ₹500 crore. It was supported technically and financially by the Biotechnology Industry Research Assistance Council (BIRAC). The drug is currently awaiting final manufacturing clearance from the Central Drugs Standard Control Organisation (CDSCO), with a commercial rollout anticipated by the end of 2025.  In a bid to make the drug more affordable and widely available, the government intends to bring nafithromycin under the Ayushman Bharat scheme, the report added.