Mumbai, Aug 1 (IANS) A letter from US President Donald Trump has asked 17 global drug giants to cut their prices in the country, sparking severe losses for them, as its impact hit the Indian stock market too.

The letter urged that these businesses cut US drug pricing to match prices in other developed markets.

Though no Indian pharmaceutical companies received Trump’s letters, the Nifty Pharma index reacted sharply, falling 2.45 per cent during the intra-day trade on Friday.

The index fell for the third day in a row. Sun Pharmaceutical Industries Ltd fell 3.98 per cent. Aurobindo Pharma lost 3.42 per cent and Granules India lost 3.2 per cent. Gland Pharma, Cipla, and Lupin fell 2 to 3 per cent.

The US President wrote to 17 of the world’s major pharmaceutical corporations, pressing them to lower drug prices immediately and give assurance that future drugs will be priced in line with other countries.

The letters were sent to Eli Lilly, Novo Nordisk, Pfizer, and others, seeking ‘Most Favoured Nation’ (MFN) pricing for US within 60 days.

White House Press Secretary Karoline Leavitt said recent data showed that Americans paid more than three times more for brand-name drugs than other developed nations.

Trump had earlier made a similar announcement on May 12, asking pharma companies to cut prices in US. Industry sources in India had then said Trump’s proposal might hurt Indian exporters of branded generics to the US, given generic drugs are already sold at low prices. If prices are cut further, it will make shipping unviable, they said. A third of Indian pharmaceutical exports of $30 billion annually, reach the US market.

Trump gave drug companies 60 days to voluntarily comply with the new pricing diktat in the letter, failing which, he said, the US would use ‘every tool in our arsenal’ to protect Americans from ‘continued abusive drug pricing’ practices.

Trump’s letter required companies to sell certain drugs directly to patients at prices at which they are offered to third-party insurers.

–IANS

aaron/na