Datanomics: India doubles its share in prescription drugs to the US

The Indian pharma stocks tanked after the announcement due to the ambiguity surrounding the impact of tariff on complex generics and specialty medicines supplied by the Indian pharma companies

Nearly 35 per cent of India’s pharma shipments landed in the US in FY25. Out of this, according to industry estimates, over 95 per cent were generic drugs, while the rest were branded or patented -- which now face 100 per cent tariff in the US. While the US’ move may impact the prospects of big Indian pharma units, the generic drug makers are likely to remain unscathed for now. Indian generic drugs have made deep inroads in the US, increasing their share over a decade starting 2013.  

 

India supplied 42 per cent of the total prescription drugs in the US in 2022, almost double of its share in 2013. During the same period, the share of other countries in such supply nearly halved. 

   

Indian firms such as Gland Pharma, Aurobindo Pharma and Dr Reddy’s earned 54 per cent, 47 per cent and 45 per cent of their consolidated revenues respectively from the US alone in FY25. 

   

In 2022, 90 per cent of the total drugs prescribed in the US were unbranded generics. Meanwhile, the rest 10 per cent of the drugs prescribed were branded with a share of 92 per cent in the total sales value.