Tariff uncertainties may spur rise in third-party pharma manufacturing

Analysts say Indian drugmakers may lean on CDMOs, US plants and diversification to safeguard high-value products as Trump's 100% tariff threat looms over patented drugs

Uncertainties around America’s tariff policies may encourage more third-party manufacturing and geographical diversification in the pharmaceutical sector in the medium term, say analysts and industry insiders. 

United States (US) President Donald Trump last week announced on social media a 100 per cent tariff on imports of branded or patented drugs. 

Pharmaceutical companies that have begun constructing plants in the US may be spared from this. 

Among Indian companies, Sun Pharma has sizeable sales in the US from patented products. Of the reported global sales of $1.2 billion from patented products in FY25, the US market accounted for $1.1 billion (or