|
India needs to develop strategies to mitigate the impact of USAID funding freeze
|
|
Nandita Vijayasimha, Bengaluru
February 08 , 2025
|
|
|
Indian pharmaceutical industry plays a crucial role in the global drug supply chain, particularly in the US. Yet India needs to develop strategies to mitigate the impact of USAID funding freeze for Indian pharma companies.
This is even as a large section of companies exporting to the US noted that even if foreign assistance is halted for drug supplies as indicated by President Donald Trump, India’s dominance in generic medicines ensures that it remains indispensable in the US market.
According to investindia.gov, manufacture of pharmaceuticals in India is 33 per cent less costly than that of western markets. The ability to keep costs down directly correlates to India’s high export numbers making vaccines obtainable for even the poorest of populations.
Even during global disruptions like Covid-19, India remained a key supplier of essential drugs, including hydroxychloroquine and paracetamol besides vaccines. US cannot afford to completely decouple from Indian pharmaceutical imports without significantly increasing domestic production, which would take years.
Sachin Marihal, co-founder and chairman, SaSPinjara Life Sciences, a technical and business consultation provider, told Pharmabiz that there is a need to devise strategies to mitigate the impact of USAID funding freeze on Indian pharma companies. Here companies should look to diversify their funding sources beyond US government aid. Exploring partnerships with other governments, international organisations, and private donors is important.
Also Indian pharma will need to implement cost-cutting measures and optimise production processes which can help maintain profitability even with reduced funding. This includes renegotiating supplier contracts and reducing overhead costs, he added.
Besides these, it would be of utmost importance for India to forming strategic alliances with other pharmaceutical companies which can help share the burden of funding cuts and leverage collective bargaining power, noted Marihal.
Kaushik Desai, a pharma consultant, is of the view that US President Trump effect will be a temporary phase for pharma business and may not have an overall impact on the export potential. All said, the Indian pharmaceutical companies will have to re-strategize their plans and focus on products having minimum impact and at the same time look for other countries for exports. Drug shortages in America gets the highest priority and India is the only country other than China who can take care of shortages.
A case in point is that India accounts for 743 US FDA approved plants which is the highest outside of the US. Every third prescription in the US is an Indian medicine. In the recent years, India has emerged as a force to reckon with in contract manufacturing based on the strengths and dependability of its pharmaceutical and biotechnology sectors globally including US, stated Desai.
On a similar note was Dr Sunil S Chiplunkar, vice president, business development, Group Pharmaceuticals who pointed that that India is the Pharmacy of the World providing affordable medicines and healthcare products through its efficiency of operations. Now buyers of affordable generics and biosimilars are ever increasing. No doubt US is emphasizing ‘Made in America’. The reality is that going beyond that slogan particularly in the case of pharmaceuticals and healthcare products will be difficult for the US.
|
|
|
|
|
|
|
|
TOPICS
|
That foods might provide therapeutic benefits is clearly not a new concept. ...
|
|
|
|
|