Question

INDPHARMA - U.S. Pharma, U.S. consumers, and Indian Pharma

Please be as detailed as possible:

Do the benefits from trade with the Indian pharmaceutical sector outweigh the losses?

Answer 1

Compared to each other, the general advantages of trade with the Indian pharmaceutical industry outweigh the losses. On the one side, the respective country's local drug production sector is adversely impacted. But on the other side, while U.S. customers enjoy reduced expenses of living a healthy life, U.S. pharmaceutical companies enjoy reduced operating and selling expenses in a extremely competitive U.S. market, a greater incentive to spend on research and development and thus a greater ability to find life-saving pharmaceutical. In this manner, the losses outweigh the advantages of engaging between these two markets.

Although the market for new patented drugs at U.S. prices was clearly negligible, innovator pharmaceutical companies had explored promising strategies to increase revenues with differential pricing. U.S. innovator companies are also profiting from the large generic market in India and increasing their sales and imports of finished good