Indian Pharmaceutical Companies: A Critical Pillar in Supplying Affordable Medicines to the U.S. Healthcare System, Reports IQVIA

20 May 2024

According to a recent report by IQVIA, a leading global provider of advanced analytics, technology solutions, and clinical research services to the life sciences industry, Indian pharmaceutical companies have played a crucial role in supplying affordable generic medicines to U.S. residents. The report indicates that Indian pharmaceutical companies provided a substantial portion of drugs to the U.S., with four out of ten prescriptions filled in the U.S. in 2022 being supplied by these companies. Specifically, Indian companies supplied 47% of all generic prescriptions and 15% of the biosimilar volume.

Among the top ten therapeutic areas by prescription volume, Indian companies supplied more than half of the prescriptions in five categories: hypertension, mental health, lipid regulators, nervous system disorders, and antiulcerants. The significant role of Indian companies is evident in these therapeutic areas. For instance, nearly half of all adults in the U.S. suffer from hypertension, with a higher prevalence among males and non-Hispanic adults. High blood pressure can lead to substantial costs for the health system, estimated at $131 billion annually in direct and indirect medical expenses. In 2022, 23 Indian companies supplied 60% of all hypertension drug prescriptions in the U.S., resulting in $25.3 billion in savings due to their affordability. Similar trends are observed for mental health drugs.

Indian pharmaceutical companies also accounted for a lower but important share of biosimilar production, manufacturing 15% of the biosimilar volume used by US patients in 2022.

The continuous supply and affordability of drugs from Indian companies support the sustainability of the U.S. healthcare system. In 2022, medicines from Indian companies provided $219 billion in savings to the U.S. healthcare system, totaling $1.3 trillion in savings between 2013 and 2022. Over the next five years, Indian companies are projected to continue playing a significant role in providing savings to the U.S. healthcare system, contributing an estimated $1.3 trillion through the supply of generic medicines.

Indian companies supply nearly half of the generic medicines paid for through Medicare and commercial insurance, offering lower costs to employers and federal programs.

Patients refilling prescriptions are more likely to receive medicines from Indian companies than those with new prescriptions. For first-time prescriptions, 41% are supplied by Indian companies, but the share is slightly higher for refills. This trend suggests that patients using medicines from Indian companies exhibit better adherence, potentially due to better affordability.

The U.S. and India have also recognized that supply chains for Active Pharmaceutical Ingredients (APIs) and Key Starting Materials (KSMs) are insufficiently diversified, presenting opportunities for collaboration to mitigate risks and diversify. The report emphasizes the urgent need for the U.S. to address bottlenecks in its API supply chain, with India positioned as a strong prospect for partnership, given its reliability and significant contribution to the U.S. drug supply chain.