Factbox: Indian drugmakers with big US exposure as Trump plans pharmaceutical import tariffs

Glenmark Pharmaceuticals

19/02/2025 09:58

By Rishika Sadam
       HYDERABAD Feb 19 (Reuters) - U.S. President Donald Trump
said on Tuesday he intends to impose a "25% or higher" levies on
semiconductors and pharmaceutical imports, and raise it
substantially over the course of a year, a move likely to hit
India's sprawling pharmaceutical industry.
    Most Indian generic drugmakers count the U.S. as their
largest market, with exports reaching $8.7 billion in fiscal
2024, or about 31% of the industry's overall exports, according
to the government-backed trade body Pharmaceuticals Export
Promotion Council of India (Pharmexcil).
    India's drugmakers export generic drugs to the U.S.,
offering a cost-effective alternate to expensive innovative
drugs. 
    Nearly half of all generic prescriptions filled in the U.S.
in 2022 were supplied by Indian drugmakers and generated $408
billion in savings for the U.S. healthcare system for the year,
according to research firm IQVIA.
    Following are India's major drugmakers relying heavily on
the U.S. market.
    
    SUN PHARMACEUTICAL  SUN.NS  
    India's largest drugmaker had 32% of its total revenue come
from the U.S. market in fiscal 2024. Sun's MD Dilip Shanghvi
told local media earlier this week that the extra tariffs, if
imposed, will be passed on to consumers.
    It exports to 100 countries and overseas sales accounted to
72.7% of the company's total revenue in the year.
    
    DR REDDY'S LABORATORIES  REDY.NS  
    North America is the largest market for the company,
contributing 47% of its total sales in fiscal 2024.
    The company relies on its key generic drugs in oncology and
immunology therapies for sales in the region, which rose 28%
from a year earlier.
    Reddy's, like other Indian drugmakers, is banking on yet to
be launched generic weight-loss drugs for growth over the next
few years in the U.S.
    
    CIPLA  CIPL.NS 
    India's third-largest drugmaker by revenue generated 30% of
its total revenue from North America in fiscal 2024, its
second-biggest market.
    The company is among the top 15 players in the U.S.
providing prescription drugs and supplies generic respiratory
and oncology medicines.
    
    BIOCON  BION.NS 
    It earned 44% of its total revenue from the U.S., its
largest market for the year ended March 2024, primarily driven
by demand for its biosimilars which are copies of complex
biologics drugs used to treat illnesses such as rheumatoid
arthritis and cancer.
    In 2022, Indian companies supplied 15% of the volume of
biosimilars in the U.S., according to IQVIA.
    
    LUPIN  LUPN.NS  
    Sales in North America contributed to 37% of overall fiscal
2024 sales, up 30% from the previous year thanks to solid demand
for the company's respiratory, antiretroviral generic drugs.
    
    GLENMARK PHARMA  GLEN.NS  
    The company generated 26% of its total revenue from North
America, its second-biggest market, in fiscal 2024. The company
is focusing on expanding its respiratory drug portfolio
offerings.
    
    ZYDUS  ZYDU.NS 
    U.S. is the largest market for the company, generating 46%
of its total revenue in 2024. The company distributes over 200
generic products in the market.

 (Reporting by Rishika Sadam; Editing by Miyoung Kim and Sriraj
Kalluvila)
 ((Rishika.Sadam@thomsonreuters.com;))