Analysts expect Indian drugmakers to strike US deals to avoid tariff blow

If Sun Pharma is able to strike a Pfizer-like deal, it may avoid US tariff in near term, say experts

Indian players may follow in US pharma giant Pfizer’s footsteps and sign deals with the Donald Trump administration agreeing to cut drug prices, which, in turn, may provide some relief from tariffs in an uncertain environment where import of patented drugs would attract 100 per cent tariff, analysts said.

 

Nuvama analysts said that such a move might result in a “temporary removal of overhang on branded pharma” in the US. It is relevant for Sun Pharmaceutical Industries which has exposure to the US innovative drugs market. Ilumya, its largest drug, generates revenue from Medicare Part B (nearly 50-60 per cent),