A global collaboration towards a secure supply-chain or a differentiated manufacturing model are just some of the options suggested by domestic drugmakers, as they face global challenges including inward-looking policies and tariffs from the US, for example, besides other geo-political concerns.
Looking at the road ahead for the domestic pharmaceutical industry, Zydus Lifesciences Chairman Pankaj R Patel pitched for a global collaboration among countries, towards a stable and secure supply chain, given the present day concerns. He also urged drugmakers to plunge into new technologies, citing China’s progress with AI, saying it may be “difficult but not impossible”.
Pointing to the role of generic drugmakers in making medicines more affordable, he said, they will do the same with newer opportunities like biological and biosimilar drugs, as they did with small molecules. Citing the example of the CAR-T products in India, that are at a fraction of the global price, he said, competition will help make it more affordable. Zydus’ Patel, along with Sun Pharma Chairman and Managing Director Dilip Shanghvi, Lupin Managing Director Nilesh Gupta and Cipla Managing Director and Global Chief Executive Officer Umang Vohra were speaking at the concluding session of the Quality Summit organised by the Indian Pharmaceutical Alliance (IPA).
Pointing to the strides made by the domestic pharma industry in the last decade to become a $50 billion- plus industry, Lupin’s Gupta said, the upcoming decade will see drugmakers take a bite at innovation.
Sun Pharma’s Shanghvi observed that domestic drugmakers were had a more international approach these days, as they compete internationally and work with global partners.
Referring to the global challenges, Cipla’s Vohra said, there may be a differentiated model of manufacturing that may be required in future, possibly even a small pilot plant in a region supported with larger manufacturing elsewhere. Also, he added that research centres may need to be closer to manufacturing plants, to facilitate tech-transfer. Significantly, he said, there would be a requirement for skilled people who can work across geographies.
With specific attention to the uncertainty due to US President Trump’s changing policies in the US, including possible tariffs on pharmaceuticals, the company representatives said, it was still too early to decide on an approach for the region. India’s tariffs on imported drugs stood at 0-12 percent, they pointed out, with some life-saving drugs having no tariffs. In fact, they said, tariffs on medicines in the US did not make sense, as less expensive generic medicines were required to bring down the cost of healthcare.