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| 1 minute read

Can an Enhanced India-U.S. Partnership Reduce Drug Supply Chain Issues?

In an effort to enhance collaboration, the Indian Pharmaceutical Alliance (IPA) recently proposed that a more formal preferred partnership between the U.S. and India can not only lower drug prices in the U.S. but can improve supply chain problems as well. As I have previously written, given political tensions between the U.S. and China in recent years, Indian pharmaceutical companies have increasingly focused efforts at supplanting China's role in providing active pharmaceutical ingredients (APIs) and starting materials for the U.S. drug supply chain. Key members of the IPA recently traveled to Washington to promote these efforts.

The IPA delegation highlighted the important role that Indian pharmaceutical companies already play in the U.S. drug supply. Specifically, a recent IQVIA report found that Indian companies supply 47% of all generic prescriptions in the U.S. and 15% of all biosimilars. The IPA is proposing that greater collaboration and production-linked-incentives can enhance the role that its members play in supplying APIs and key starting materials for the U.S. market.

Given continued supply chain issues that impact certain medicines, it will be interesting to see if improved collaboration between the U.S. and India can provide a potential solution. It will certainly be worth watching the more specific proposals that the IPA intends to roll out in the coming months.   

This would facilitate an enhanced and resilient trade, involving more products between the two countries, a person familiar with the development said, pointing to medicine shortages the US grapples with.


intellectual property, biosimilars, fda, generics, healthcare, patents, pharma, regulatory