Impact of Trump's Drug Price Reduction Plan on Indian Pharmaceutical Companies

Overview of Trump's Executive Order On May 11, 2025, former U.S. President Donald Trump announced plans to sign an executive order aimed at reducing prescription drug prices in the United States by 30% to 80%. This initiative, a revival of his earlier “America First Healthcare Plan,” proposes the use of the “Most Favored Nation” (MFN) pricing model to align U.S. drug prices with the lowest prices paid by other developed countries such as Germany, the United Kingdom, Canada, and Japan. Under this policy, Medicare — the federal health insurance program for seniors and disabled individuals — would reimburse prescription drugs at the lowest price paid in these nations. Rather than relying on government subsidies, the plan leverages Medicare’s purchasing power to pressure drug manufacturers into lowering their prices. Companies that fail to comply could face exclusion from Medicare and other federal reimbursement programs, a significant commercial risk. Indian Pharmaceutical Companies with the Highest U.S. Exposure India plays a crucial role in the global generics supply chain and supplies approximately 40-50% of all generic drugs consumed in the U.S. The American pharmaceutical market, known for its scale and regulatory stringency, accounted for nearly one-third of India’s total pharma exports in FY 2023-24. Several Indian pharmaceutical firms have built substantial operations in the U.S., particularly in the generics and biosimilars segments. Here is an overview of the top Indian companies by U.S. sales, along with their technical outlook: 1. Sun Pharmaceutical Industries Ltd. U.S. Sales (Q2 FY24): $430 million

Sun Pharma is India’s largest pharmaceutical firm and a global leader in specialty generics. It has a broad product portfolio in the U.S., spanning both generics and branded specialty drugs. Current Market Price (CMP): 1685 Nearest Support: 1555