U.S. President Donald Trump's plan to impose tariffs on generic drugs will lead to patients in the U.S. paying higher prices, warned the CEO of Indian pharmaceutical company Dr Reddy's Laboratories, Erez Israeli.
He stated that manufacturing of generic drugs in India leads to a significant decrease in the cost of medicine to the United States.
To move the manufacturing of its generic drug portfolio to the U.S., it could take four to seven years, he added.
Trump announced that generic drugs imported into the U.S. will face zero tariffs for two years starting August 1, before a 100% levy takes effect in August 2028 and rises to 200% a year later.
Indian companies account for nearly half of generic drug supplies to the U.S.
Israeli highlighted that generic drug sales to the U.S. are now just 27% of the company's total sales, shrinking from 50% a few years ago.
He noted that the tariffs are unlikely to push generic drug companies to move to the U.S., as production costs there are higher than in India.
