Umang Vohra, MD and CEO Global, Cipla
The United States government order to pharmaceutical companies to reduce the cost of prescribed medications within 30 days will not affect Indian generic drug manufacturers on Tuesday, the CEO of Cipla and the global CEO, Umang Vohra, said Tuesday.
He pointed out that the executive order signed by the president of the United States, Donald Trump, will probably affect brand drugs.
“What we understand is that this is a great goal towards brand drugs … From now on, what we understand is that this is a voluntary measure that perhaps companies will take,” said Vohra.
He pointed out that there are aspects of MFN clauses, etc., and it is not clear from now on how and how the executive order will be implemented.
“Then, from now on, from a generic perspective, I believe that generic (drugs) prices in the US are already significantly comparable to the rest of the world, in some cases it is lower. Therefore, we do not believe that at least for now, according to what the promulgation says, we believe that this is more (towards) the brand of the brand … rather on the generic side,” said Vohra.
On May 12, Trump signed an executive order that established a 30 -day deadline for drug manufacturers to decrease the cost of prescribed medications in the United States.
The order requires that the Health Department negotiate new drug pricing labels. If an agreement is not reached, a new rule will be activated to link the price of what the United States pays for drugs at released prices paid by another country.
Responding to a consultation regarding the impact on the company’s business if the United States government imposes taxes on pharmaceutical imports, Vohra said: “Our business continues as usual. There are never bone bone anywhere.
“And so we do not see the impact. In any case, we are in the generic sector. The purpose of what we do is provide medications to people who really need it from a affordability perspective. So, from now on, we do not see any business.”
Vohra said that a lot will happen between the United States government and the Indian government.
“We are monitoring all that. And you know, we do not expect material changes in the generic business environment,” he said.
He pointed out that if the Trump administration brings tariffs, it will be significant lower than the other regular goods.
“I don’t think there is an answer about whether everything will be transmitted to the client or that everything will be absorbed. I think it will be a combination of the two,” Vohra said.
Currently, India raises about 10 percent import taxes in American drugs, while charges are not imposed on Indian drugs imported by the United States.
It is likely that the Trump administration will impose tariffs on drug imports to the United States in the coming days.
In April, the United States government exempt the Indian pharmaceutical sector from reciprocal tariffs, collecting the vital role played by the national industry in the supply of affordable medicines worldwide.
Posted on May 13, 2025
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