Indian drug makers are busy building manufacturing facilities in USA to beat Trump Tariff
Biocon’s first US manufacturing facility in Cranbury New Jersey was inaugurated on 10th September this year.The new facility underwent a GMP inspection by the U.S. FDA.
The inspection concluded with 1 observation which the Company will address within the stipulated time and is not expected to have any impact on business operations.
Biocon acquired the Cranbury-based Oral Solid Dosage facility from Eywa Pharma Inc. in 2023 and has since invested more than $30 million to establish a state-of-the-art plant with an annual production capacity of 2 billion tablets. A few products have already been commercialized from the site, with several more in the pipeline. This investment helps Biocon diversify its manufacturing base, strengthen its supply chain and accelerate the expansion of its global footprint.
Biocon has approximately 60 employees at the new facility (40 employees joined from Eywa, while Biocon hired the rest), and plans to grow to about 80 to 85 people managing the facility over the next few months.
The Cranbury facility represents a strategic advancement of the Company’s operations in the Unted States, enabling faster access to Biocon’s vertically integrated portfolio of products, benefitting patients in the region. With some products having already been commissioned from this site and additional launches in the pipeline, the facility will play a key role in furthering Biocon’s mission to expand access to high-quality, affordable therapies worldwide.
US president Donald Trump has announced tariffs of 100% on branded or patented pharmaceutical product imports into the US, leading to questions on how the Indian pharma sector will cope.
"Starting October 1st, 2025, we will be imposing a 100 per cent Tariff on any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America," Trump wrote on Truth Social.
""IS BUILDING" will be defined as, "breaking ground" and/or "under construction." There will, therefore, be no Tariff on these Pharmaceutical Products if construction has started. Thank you for your attention to this matter," he added.
India's total pharmaceutical exports were almost US$ 28 billion in the 2024-25 financial year, with the US its largest export market at US $8.7 billion, according to the Pharmaceuticals Export Promotion Council of India.
