According to the IǪVIA Institute report, India has long been a critical source of affordable medicines for the United States. Ninety percent of all medicines prescribed for Americans are generic, and 47 percent of those prescriptions are filled with products produced by Indian pharmaceutical companies. The average annual savings to the U.S. healthcare system by these companies is more than $219 billion, and over $1.3 trillion over the past decade
New Delhi:
The Indian Pharmaceutical Alliance (IPA) – comprising 23 leading Indian research-based generic pharmaceutical companies – convened today at the DAR Museum in Washington DC to urge a U.S.-India trade partnership to reduce reliance on foreign sources for both nation’s pharmaceutical supply chain and achieve affordable medicine resilience.
These leaders cited a key new study released by IǪVIA Institute for Human Data Science highlighting India’s vital contribution to the U.S. healthcare system, and the significance of the U.S. India relationship for strengthening the health security of both countries.
With a single source increasing U.S. market share of basic medicines on which Americans rely such as hypertensives and antibiotics (distributing close to half of global antibiotics), stressing the importance of Indian pharmaceutical companies as strategic affordable medicines partners to America, these executives called for a transformative ‘Affordable Medicine Partnership’ aimed at shoring up health and national security in the U.S. and India.
“The time has come to restore balance and build resilience in these critical networks. This is not merely prudent – it is crucial,” said Sharvil Patel, Vice President, IPA and Managing Director of Zydus Lifesciences.
The Affordable Medicine Partnership would align with the February 2021 Executive Order on America’s supply chains, in which President Biden identified pharmaceuticals and active pharmaceutical ingredients as a supply chain risk and declared that “the U.S. needs resilient, diverse, and security supply chains to ensure our economic prosperity and national security.”
According to the IǪVIA Institute report, India has long been a critical source of affordable medicines for the United States. Ninety percent of all medicines prescribed for Americans are generic, and 47 percent of those prescriptions are filled with products produced by Indian pharmaceutical companies.
The average annual savings to the U.S. healthcare system by these companies is more than $219 billion, and over $1.3 trillion over the past decade.
‘We fully embrace our role as America’s medicine partners,” Patel continued.
“The new IǪVIA Institute report highlights our vital contributions to the U.S. healthcare system. Our operations across the U.S. are more than just business; they embody our deep commitment to American communities.” Patel, discussed the specific findings of the new report.
“The findings demonstrate the significant contribution by Indian firms to the U.S. healthcare system.
In five (5) of the top ten (10) key therapeutic areas, Indian companies account for more than 50% of the U.S. prescriptions, with percentages ranging from 55% to as high as 60%.
Patel concluded, “the U.S. and India have both acknowledged that supply chains for APIs and KSMs are insufficiently diversified and that there is scope to collaborate to de-risk and diversify.”
In referencing that the trade proposal aligns with President Biden’s executive order, India’s Production Linked Incentive Program, and the January 2024 U.S.-India joint statement, said Vinita Gupta, CEO of Lupin emphasized its significance.
“The Affordable Medicine Partnership proposal is more than a trade initiative; it’s a foundational step towards strengthening the health infrastructure vital to our mutual prosperity and security.”