India’s pharmaceutical sector closed 2025 with mixed signals in markets and policy. Moneycontrol reported the BSE Healthcare Index slipped about 1.5% by late December, lagging the Sensex’s roughly 8.36% rise. The year also brought trade uncertainty after U.S. tariff threats that could have raised costs for Indian drug exports, estimated at $8–9 billion annually. Separately, child deaths linked to contaminated cough syrups prompted tougher quality checks and removal of many syrups from over-the-counter shelves as regulators sought to restore trust.
Innovation provided a counterweight. Glenmark’s Switzerland-based Ichnos Glenmark Innovation signed an oncology licensing deal with AbbVie in July with a $700 million upfront and milestones that could lift the total to $1.2 billion. Wockhardt reached a milestone in December when the U.S. FDA accepted its new drug application for the antibiotic Zaynich and granted Fast Track status, with a decision expected in 2026. The report said New Delhi also rolled out R&D-focused programs such as the RDI scheme and PRIP to encourage novel products and drug-delivery technologies. Companies also increased focus on complex generics, injectables, and biosimilars. US sales account for about 30–45% of revenue for leading firms, while domestic formulations grew 8–10% in FY25, partly helping offset patent-expiry impacts.
Why it matters
The combination of safety tightening, trade risk, and higher-value R&D is pushing Indian drugmakers to protect access while shifting from commodity generics to more defensible products.
Source Attribution
Source: Moneycontrol | Adapted & summarized
Published on: 31 December 2025
Category: Healthcare
Region: USA
