National Republican Congressional Committee

New Delhi: Siddharth Mittal , CEO and Managing Director of Biocon Limited, on Friday questioned who would pay the price to shift their establishments to the US where pharma manufacturing costs are higher than in India and China. "I think we all know that manufacturing for all segments moved to China, which was a cost arbitrage over decades. And now you're trying to reverse it. So, there's a price to pay," Siddharth Mittal said, speaking at the Carnegie Global Technology Summit. "And in our industry, I'll give you an example, that if a drug in is made at X price in China, it's 1.25 to 1.3 X in India. And the analysis we have done is if we have to do the same thing in the US, it's going to be 2X. So, who's going to pay the price to bring back manufacturing in the US ?" he asked. He said 50 percent of the drugs in the US come from India, indicating that the US is a key market for Indian pharmaceutical products. Most Indian companies have set up manufacturing plants in the US. "US is biggest market for us, but it is very price sensitive. The US has a great research ecosystem. We have the talent, and India has a good understanding of the entire ecosystem. US, of course, has a great research ecosystem, and I think that's where I see a first opportunity," he said. He also spoke about the dependence of China on active pharma ingredients. "India is still dependent 70 per cent on China to procure starting materials or raw materials. So if we do not address the entire value chain, we will not fix the problem," he supplemented. Earlier, on April 9, while speaking at the National Republican Congressional Committee dinner, US President Donald Trump warned of impending tariffs on Pharma. "Tariffs on pharma will be there because we don't make our own pharma drugs; they are made in another country. The same packet in the US is priced at USD 10 or more. We are going to tariff pharma in such a way that companies will come rushing to us very soon. The advantage we have is, we are very big market. Very shortly, will announce a major tariff on pharma, and when these companies hear that, they will leave China and other countries because most of their products are sold here. And they will be opening their plants here," Trump said. Indian generic drug manufacturers play a significant role in the U.S. healthcare system, supplying nearly 40 percent of the generic drugs imported into the country. In FY24, Indian pharmaceutical exports to the U.S. were valued at approximately USD 8 billion, with the industry witnessing an 8 percent compound annual growth rate (CAGR) over FY15 -24.

Welcome back to Endpoints Weekly! This week’s recap kicks off with Andrew Dunn’s examination of the biotech playbook for surviving market turmoil. As former Alnylam CEO John Maraganore put it, recent events have “put biotech CEOs in a very difficult set of shoes compared to what we’ve had to deal with in the past.” See below for more details on how companies might handle the uncertainty. Meanwhile, our reporters tracked news on potential pharma-specific tariffs, which President Donald Trump said would be arriving “very shortly.” And a congressional commission is pushing for a big investment in the biotechnology sector to keep up with Chinese competition. If you’ve got a bit of downtime this weekend, grab a cup of tea and peruse our handful of Q&As out this week, including conversations with GLP-1 co-discoverer Jens Juul Holst, gene editing pioneer David Liu and Leerink Partners senior managing director David Risinger. See you on Monday! — Nicole DeFeudis It’s a tough market for biotech companies, but the sector has been here before. Endpoints News’ Andrew Dunn reports that the playbook remains largely the same. Take a look here at the 10 moves Dunn said biotech CEOs are likely considering, including: 🪓 Buckle down and extend the cash runway: Drug programs on the chopping block can be out-licensed or spun into new subsidiaries. Or they may be ultimately shut down. The goal is to extend cash to make it through to catalysts for the most promising drug programs, Dunn reports. 💰 Selling royalty rights: For biopharmas with a potential approved drug in sight, royalty deals can raise capital without diluting shareholders. But they give away a chunk of future upside. 🤝 Pharma partnerships: They bring in cash, keep research going, and provide a credibility boost. But as former Vertex Pharmaceuticals CEO Joshua Boger told Dunn over a year ago: “Realize they’re going to be painful, it’s going to be horrible, and you need to do it.” Read the whole playbook here. And click here for more insight from Drew Armstrong and Max Bayer’s Q&A this week with Leerink Partners senior managing director David Risinger. “In a typical financial crisis, corporations have to think about their cash flows and balance sheets,” Risinger said. “But then the FDA-specific turmoil that is happening really makes it difficult for corporations to plan for the future.” 🌎 Much of the world got a reprieve from President Donald Trump’s tariffs this week. But the president said earlier in the week that pharma-specific tariffs would be arriving “very shortly.” Analysts weighed in on what a potential rollout could look like here. “We’re going to tariff our pharmaceuticals and once we do that, they’re going to come rushing back into our country,” Trump said at a National Republican Congressional Committee event. Trump has previously praised companies like Eli Lilly , Johnson & Johnson and Merck for boosting their US footprint. All three companies have announced multibillion-dollar investments to build or expand US factories. On Thursday, Swiss-based Novartis said it would invest $23 billion in American manufacturing and R&D over the next five years. A Novartis spokesperson declined to clarify how much of the $23 billion investment had already been planned or disclosed. Meanwhile, the European Federation of Pharmaceutical Industries and Associations warned of a potential “exodus” to the US. The group said in a statement on Tuesday that “unless Europe delivers rapid, radical policy change then pharmaceutical research, development and manufacturing is increasingly likely to be directed towards the US.” It called for “immediate action” on several fronts, including strengthening intellectual property provisions and “adopting a world leading regulatory framework conducive to innovation.” 💸 Amid the burgeoning trade war with China, a Congressional commission is looking to find a way for American biotechs to remain competitive. This week, the National Security Commission on Emerging Biotechnology — which is made up of members from both chambers of Congress as well as civilian experts — urged a $15 billion investment in the sector to keep up with Chinese competition. The timing comes amid cuts across the federal government, including at HHS, which laid out plans last month to cut thousands of employees. Sen. Todd Young (R-IN) recognized “the fiscal challenges associated with persuading colleagues to add new priorities to the list.” But he said the focus should be on setting the right priorities without needing to “fund everything.” This week’s recommendation echoes efforts of the Biosecure Act, a bill introduced last year. The legislation sought to ban US reliance on suppliers like WuXi AppTec, but didn’t eventually become law. Unlike the Biosecure Act, the commission’s report does not name specific Chinese companies. 💰 Merida Biosciences emerged from stealth this week with $121 million in its pockets . Their goal? Create and develop new medications for autoimmune diseases and allergies, with an initial focus in experimental drugs for a thyroid condition called Graves disease, food allergy and primary membranous nephropathy, an autoimmune kidney disease. Beating Xolair will be a challenge and may take years. Last year, the Roche and Novartis drug racked up $4.4 billion in sales, and other companies have tried to crack food allergy before. But CEO Adam Townsend thinks food allergy can be Merida’s “gateway into showing our science and how it works there.” 💬 Q&As with industry and academic thought leaders filled Endpoints’ newsletters this week, and what better way to start your weekend than by reading what they had to say? Elizabeth Cairns sat down with GLP-1 co-discoverer Jens Juul Holst to discuss the future of incretin-based drugs, and Ryan Cross had a conversation with gene editing pioneer David Liu about the economic and political turmoil in science. Both came from the sidelines of the Breakthrough Prizes in Life Sciences, also known as the “Oscars of Science.” We hope you enjoy.

On Tuesday, President Donald Trump announced plans for a major tariff on pharmaceutical imports, a move aimed at encouraging drug companies to shift operations to the U.S. The announcement was made during an event hosted by the National Republican Congressional Committee. India, a key player in the global pharmaceutical market, could face significant challenges if the new tariffs are implemented. In 2024, India's pharmaceutical exports to the U.S. were valued at USD 12.72 billion, making it the country's largest industrial export sector. Indian companies play an essential role in the U.S. healthcare system, supplying four out of every ten prescriptions filled in the U.S. Medicines from Indian firms saved the U.S. healthcare system USD 219 billion in 2022, and over the past decade, the savings amounted to USD 1.3 trillion. Experts warn that higher tariffs could increase production costs for Indian drugmakers, reducing their price competitiveness globally. The move comes shortly after the U.S. introduced a 26% reciprocal tariff on Indian goods, citing high import duties imposed by New Delhi on American products. Meanwhile, Trump has also targeted Taiwan Semiconductor Manufacturing Company (TSMC) with a potential 100% tax, urging the company to establish plants in the U.S.