According to Natco Pharma’s Vice-Chairman and CEO Rajeev Nannapaneni, getting a front-end manufacturing foothold in the US could be the best solution for Indian generic drugmakers in the event of the US imposing tariffs on pharmaceuticals. Nannapaneni expressed this sentiment during a recent investor call, noting that if tariffs become a reality, they would have a significant impact on India’s pharmaceutical industry, which currently concentrates most of its manufacturing in the country. He believes that setting up a manufacturing base in the US would be a strategic move, but it would be limited to certain products that are feasible to produce in the country. However, he also mentioned that “you can’t do everything” due to production costs and other factors.
The company is considering acquiring prescription pharmaceutical businesses in the Rest of World (RoW) region and the US to strengthen its portfolio. As of December 31, 2024, Natco Pharma had a net cash balance of INR 3,000 crore. The company reported a consolidated net profit of INR 132.4 crore for the third quarter ended December, compared to INR 212.7 crore in the same period the previous year, with total revenue of INR 651.1 crore (INR 795.6 crore).
The statement comes as US President Donald Trump has announced plans to impose 25% tariffs on various imports, including pharmaceuticals, with the rate increasing progressively. Currently, the US has a zero-tariff regime on pharmaceuticals from India. Natco Pharma’s comments suggest that Indian generic drugmakers may need to reconsider their business strategies in response to the evolving tariff scenario.