Weaponising health, Pg6

Key Highlights:

• U.S. President Donald Trump announced 100% tariffs on imports of branded and patented medicines, effective October 1.
• A 15% tariff cap on imports from the European Union and Japan will be honored by the U.S.
• India's generics industry has been spared for now, with $10.5 billion worth of formulations exported to the U.S. in FY25.
• Concerns remain over whether Active Pharmaceutical Ingredients (APIs) will be included in the tariff net.

Detailed Insights:

• The new tariffs could severely impact patients needing specialized cancer or rare disease drugs and the U.S. health insurance sector.
• An Ernst & Young study estimated that a 25% tariff on patented drugs would increase annual drug costs by about $51 billion.
• The U.K., Switzerland, and Singapore face a potential 100% tariff burden, making their pharmaceutical products more expensive in the U.S.
• Any tariff expansion to include generics or biosimilars could negatively impact India's successful export sector.
• The move contradicts warnings from PhRMA, which stated that tariffs would raise costs for patients without addressing supply chain issues.
• Nations heavily dependent on U.S. demand must diversify export markets and accelerate alternative trade alliances.

Key Concepts Involved:

• Generics: Medications that have the same active ingredients as brand-name drugs but are typically sold at lower prices.
• Biosimilars: Biological products that are similar to already approved biological medicines.
• Active Pharmaceutical Ingredients (APIs): The biologically active component of a drug product that produces the intended effects.