Cipla managing director and global CEO Umang Vohra is optimistic about the opportunities arising for Indian pharmaceutical companies, particularly in the face of expected changes in US trade policies when Donald Trump takes over as the president in January.
Speaking to Moneycontrol, Vohra said the US biosecurity act, which restricts US pharma companies from trading with countries deemed adversaries, could benefit Indian firms that have built trusted relationships in the United States.
“The US government’s increasing focus on domestic manufacturing and supply chain localisation presents a unique opportunity for Indian companies, especially those that have committed to complying with FDA standards,” Vohra said, referring to the American drug regulator the Food and Drug Administration.
Cipla, with its established manufacturing presence in the US, is positioned to take advantage of these policy shifts, he said.
“We have been diversifying our supply chain for years, with significant portions of our production already based in the US,” he said. “The biosecurity act aligns with our approach, and I don’t foresee drastic changes in how we operate. We are already well-aligned with the US market’s expectations.”
The United States remains a big market for Cipla. Though the company doesn't give a complete break up, 28 percent of its September quarter revenue came in from North America, in which the US was likely the biggest contributor.
Tariffs and ‘America First’
The biosecurity act, which passed by the House of Representatives in September and is now with the Senate, prohibits US pharma companies from working with countries considered adversaries.
Vohra is hopeful that India’s long-standing relationship with the US will remain unaffected. “India has always been seen as a reliable and trusted partner in the pharmaceutical industry,” he said.
He also touched upon the broader impact of Trump’s policies, especially tariffs and his “America First” agenda, which has the potential to affect Indian pharma exports.
“While it’s too early to predict the full impact of tariffs, I don’t foresee major disruptions to Indian pharma exports to the US. India continues to have a favourable reputation in terms of manufacturing capabilities,” he said. “However, there could be minor adjustments as both countries navigate these changes.”
Also Read: Cipla Q2 net profit jumps 15% on-year to Rs 1,303 crore, beats estimate
The Cipla CEO underscored the importance of FDA-compliant facilities in the US, saying its investments in America-based manufacturing for inhalers and other products place it in a strong position to weather potential trade disruptions.
“We’ve built or acquired facilities in the US, ensuring our products meet FDA standards,” Vohra said. “This local manufacturing strategy is critical for maintaining uninterrupted access to the US market, especially as policies shift.”
Vohra also remains confident of Cipla’s overall growth. The Mumbai-based company’s expanding product pipeline and FDA approvals would be key growth drivers.
“We’re seeing positive momentum in terms of both pipeline expansion and regulatory approvals, which will help offset any potential market disruptions caused by trade policy shifts,” Vohra said.
The company’s long-term strategy is to adapt to both domestic and international challenges while capitalising on its existing strengths in the US market.
“The Biosecurity Act and the drive for increased US-based manufacturing will likely encourage more investment in local production,” Vohra said. “Cipla is well-prepared to take advantage of this trend, ensuring we can meet the growing demand for quality pharmaceuticals both in the US and globally.”
At 11.31 am, the Cipla stock was trading at Rs 1,560.95 on the National Stock Exchange, down 2 percent from the previous close.
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