The global pharmaceutical market is undergoing a reshuffle, and Taiwanese manufacturers are expected to benefit from two major advantages. Industry experts note that Taiwan’s strong generic drug manufacturing capabilities not only help alleviate domestic drug shortages, but also stand to gain from the U.S. decision to exempt imported generic drugs from newly imposed tariffs.

U.S. President Donald Trump announced last month that a 100% tariff would be levied starting in October on all imported branded and patented drugs. However, according to recent international reports, this policy will not apply to imported generic drugs. The White House stated that the government is not actively discussing imposing tariffs on generics under Section 232, and the U.S. Department of Commerce, which is responsible for the tariff investigation, confirmed that the Section 232 probe will not result in tariffs on generic medications.

Nonetheless, the U.S. Food and Drug Administration (FDA) continues to advance its strategy of strengthening domestic pharmaceutical manufacturing. The agency recently announced a pilot program aimed at supporting U.S. generic drug production. When necessary, the FDA will provide financial assistance, technical support, and process streamlining to encourage generic manufacturers to expand their production capacity in the United States.

Taiwan Generic Pharmaceutical Association (TGPA) Chairperson I-Fen Chen stated that the vast majority of Taiwan’s pharmaceutical exports to the United States—both finished formulations and active pharmaceutical ingredients (APIs)—are destined for the generic drug market. The latest U.S. pharmaceutical policy is thus relatively favorable for Taiwanese drugmakers. Companies with significant API exports to the U.S., such as China Chemical & Pharmaceutical, Yung Shin Pharmaceutical, and Standard Chem. & Pharm., are expected to benefit.

In response to U.S. pharmaceutical policy trends, several Taiwanese biopharmaceutical companies, including Bora Pharmaceuticals, Lotus Pharmaceutical, Yung Shin Pharmaceutical, EASYWELL BIOMEDICALS, and PharmaEssentia, have initiated mergers, plant constructions, or production capacity expansions in the U.S. market since the beginning of this year. These companies are expected to be among the first to enjoy the policy dividends resulting from these developments.

Resource: 全球藥品市場洗牌 台廠雙多