AAM comments on Section 232 investigation on pharmaceuticals
The Association for Accessible Medicines on April 15 commented on an announcement by the Department of Commerce beginning a Section 232 investigation into possible tariffs and other trade remedies with the goal of encouraging more domestic manufacturing of pharmaceuticals.
“AAM and the generics and biosimilars industry look forward to working with the Commerce Department and the White House to engage constructively on ways to incent more domestic investment in the medicines supply chain,” said John Murphy III, president and CEO of AAM. “As we have said countless times: a resilient and reliable generic medicines supply chain is critical to patient health, U.S. healthcare and national security interests. Tariffs, however, will only amplify the problems that already exist in the U.S. market for affordable medicines.
[Read more: AAM: Redesigned Medicare drug program still allows PBMs to deny patients access to lower-cost generics, biosimilars]
Murphy added, “Without substantive regulatory and reimbursement changes to the U.S. market, tariffs will exacerbate shortages that hinder patient access today. Instead, we urge the Administration to work with us on a suite of reforms that prioritize patients, national security, and ultimately will lead to more resilient and reliable access here in the U.S. As was the case in the previous Trump Administration, we also support exemptions and carve-outs from tariffs for essential and short-supply medicines as well as for the base ingredients in those medicines.”
[Read more: AAM: Generic medicines increase patient access more than government negotiated price controls]
The Indian Pharmaceutical Alliance, comprising 23 leading Indian research-based generic pharmaceutical companies, issued the following statement on the Trump Administration’s Section 232 investigation:
"We are committed to working with the Trump Administration on its special investigation of the pharmaceutical supply chain to help bring powerful, untoward market dynamics to light,” said Kathleen Jaeger, U.S. spokesperson for the Indian Pharmaceutical Alliance. “India is a critical partner in America’s medicine supply, with nearly 50% of generics prescriptions in the U.S. coming from Indian manufacturers. This saves America $219 billion annually.”
“Today, generics represent 1.2% of total U.S. healthcare costs despite covering 90% of all prescriptions in the United States. Indian pharmaceutical manufacturers help Americans with hypertension, high blood pressure, and pain every single day. But the companies manufacturing these drugs operate under razor-thin margins. If large tariffs are imposed, they will trigger substantially more drug shortages, cause greater U.S. dependence on China for life-saving medications, and delay Indian companies’ investments in America,” Jaeger added.
“There are paths for the Trump Administration to bring down costs, including addressing the impact of middlemen — Pharmacy Benefit Managers and Group Purchasing Organizations — that stifle the U.S. generic industry. These unfriendly market conditions for generics hurt everyone involved and also undercut the President’s healthcare agenda. Adding tariffs on America’s affordable medicine partners in India would make it even worse -- for patients, the healthcare system and for America's national security," Jaeger said.
This article has been updated.