July 22 (Reuters) – The generic drug market still faces structural and purchasing hurdles despite strong U.S. growth, an industry group noted on Wednesday, after President Donald Trump said imported generic medicines would face up to 200% tariffs after two years.
“Our industry has grown significantly in the U.S. over the past two years through targeted investments across the supply chain. However, structural problems in both purchasing and reimbursement for many generic drugs remain a significant inhibitor to the growth of this sector in the U.S,” said John Murphy III, president and CEO of the Association for Accessible Medicines.
Trump said on Tuesday all generic drugs being brought into the U.S. would continue having a tariff of 0% for two years starting August 1, after which the rate would be raised to 100% for one year and to 200% thereafter.
The industry, Murphy said, has several legislative and regulatory solutions to address the market deficiencies and looks forward to dialogue with the administration and with Congress.
Shares of Indian pharmaceutical companies, which supply generic medicines to the U.S., fell 1.3% after the phased tariff plan. Swiss generic drugmaker Sandoz said it would continue discussions with policymakers.
“Imposing massive tariffs on generic medicines risk making lower-cost generic drugs millions of Americans rely on more expensive and harder to access,” said Merith Basey, CEO of Patients For Affordable Drugs, a patient advocacy organization.
(Reporting by Sneha S K in Bengaluru; Editing by Shilpi Majumdar)
