The CEO of Cipla, a major Indian pharmaceutical company, has expressed concerns that the increasing reliance on tariffs to dictate business decisions in the industry is not a sustainable or effective approach. In an interview, Dr. Samot Shergill, CEO of Cipla, highlighted the unpredictability of tariffs and their potential to disrupt global trade.
Shergill emphasized that tariffs, including those imposed by the US and other major economies, can have significant negative impacts on the industry. He noted that tariffs can lead to increased costs, reduced access to raw materials, and supply chain disruptions, ultimately affecting the quality and affordability of medicines.
The CEO also expressed concerns about the potential damage to the global supply chain caused by tariffs. He warned that a trade war or disruptions to global trade can lead to shortages and delays in the production and distribution of life-saving medications. Shergill stressed that the pharmaceutical industry is highly dependent on global supply chains, and sudden changes in trade policies can have far-reaching consequences.
Furthermore, Shergill criticized the use of tariffs as a tool for trade policy, stating that it is not an effective or sustainable approach. He believes that cooperation and collaboration among governments, industry leaders, and stakeholders are necessary to address the complex issues facing the pharmaceutical industry.
Cipla, like many other Indian drugmakers, has been affected by the increasing anti-dumping duties imposed by some countries, including the US. Shergill notes that the company is facing challenges in sourcing raw materials and meeting regulatory requirements due to these tariffs. He emphasizes that the instability and uncertainty caused by tariffs make it difficult for Indian pharmaceutical companies to plan and invest in their future.
In conclusion, Shergill urges governments to adopt a more constructive and collaborative approach to addressing the complex issues facing the pharmaceutical industry. He believes that tariffs can only lead to short-term gains, but ultimately harm the industry and the patients they serve. Instead, he suggests that governments work together to address the root causes of trade imbalances and promote fair and open trade practices that benefit all stakeholders.