As the threat of Trump’s tariffs on Indian pharmaceutical exports loom large, Alembic Pharmaceuticals said it is doubling down on the US generics business while fortifying supply chain and exploring domestic manufacturing alternatives.
In an exclusive interview to Moneycontrol, Managing Director Pranav Amin said Alembic is preparing for multiple tariff scenarios, ranging from benign to disruptive. “Best case is nothing happens to pharma,” Amin said, referring to the proposed tariffs by US President Trump that currently exclude pharmaceutical products. “Even if tariffs do come in at 5-10 percent, they can be absorbed. But anything above 25 percent could make high-volume, low-margin products unviable.”
Alembic’s US generics business, making up for over 30 percent of revenue in Q1FY26 rose 13 percent on-year to Rs 523 crore, driven by new launches and rising market share. Read More
The company launched four products during the quarter and expects over 15 launches in FY26, with its US portfolio now including 167 commercialized products, supported by 10 manufacturing facilities and 268 ANDA filings.
Amin remains bullish on the US market despite pricing pressures and rising competition. “You can’t ignore the US. It’s still profitable, and there are opportunities if you move up the value chain,” he said, pointing to Alembic’s recent acquisition of Utility Therapeutics as a strategic entry into the branded space.
Internal Playbook against Tariffs
To mitigate the risk of tariffs, Amin said Alembic is pursuing a multi-pronged strategy of backward integration for APIs to reduce dependency on external suppliers, cost optimization through increased throughput and shifting logistics from air to sea, exploring US-based contract manufacturing to de-risk supply chains, and selective acquisitions for high-value, complex products rather than commoditized generics.
“There’s no playbook for this. We’re doing it ourselves - sourcing more from India, improving conversion costs, and building resilience,” Amin said, emphasizing that Alembic is not relying on consultants.
The Trump administration’s revived tariff agenda has rekindled concerns across Indian exporters. While pharma has so far been spared, the industry remains wary. Tariff on generics could disrupt supply chains and inflate costs in a market where margins are already thin.
Some pharma companies have begun acquiring US manufacturing assets to hedge against any policy shock. Amin, however, cautions against reactionary moves. “Don’t buy a US plant just because of tariffs. Do it if you’re targetting government contracts, where local manufacturing is a must.”
From API to US Front-end Generic Play
Alembic Pharma entered the US market in 2015, transitioning from API exports to direct marketing of generic formulations. Over the past decade, it has invested heavily in building USFDA-compliant manufacturing and R&D to develop a robust pipeline across oral solids, injectables, ophthalmic and dermatology. The US front-end is now well-established with a strong customer base and regulatory track record.
Alembic’s US foray received a major boost in 2018 when it benefited from disruptions in the sartan drug market, used in hypertension and cardiovascular diseases, as competitors exited temporarily due to carcinogenic impurities found in the active ingredient.
With 223 ANDA approvals and a growing portfolio of complex generics, Alembic is positioning itself for long-term growth - even as it braces for geopolitical headwinds.
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