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Below the Quote on Trump`s announcement of 100% duties on branded drugs by Mr. Tushar Manudhane, Senior Vice President, Institutional Research Analyst – Healthcare, Motilal Oswal Financial Services Ltd

Given the duties announced are on branded/patented drugs, there would be no impact on the generics exports done by Indian pharma companies. The major portion of exports to US is generic medicine. So we believe it is business as usual for generic pharma companies. Even with respect to CDMO companies, they make part of the product and not the formulation for Innovator/global pharma companies. Also, CDMO companies cater to global requirement of innovator pharma companies and not just the US market.

Also, the overall raw material of innovator companies is about 4-5% of sales. Given the change of source of raw material is long drawn exercise and has multiple hurdles comprising capability, capacity as well as compliance, we believe, there is a scope of either absorption of cost by the innovator or pass it to customer. The innovator has limited period of patent exclusivity and would like to utilize the time to maximize the sales. We still await the executive order for detailed understanding of tariff on drugs

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