Pharma Stocks At Risk After Donald Trump, Inspired By NAMO, To Indulge In being "Aatmanirbhar"

Discussion in 'Must-Read Interviews, Articles & News Items' started by Arjun, May 15, 2020.

  1. Arjun

    Arjun Chaprasi Staff Member

    Mar 19, 2015
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    NAMO's clarion call that the Nation should become "Aatmanirbhar" (Self-Reliant) has inspired everyone in the Country and across the Globe.

    The White House is also taking a cue from this.

    According to a report in CNBC, the White House preparing an executive order which will require certain essential drugs be made in the USA.

    The order could come out as soon as Friday. The applicable time frame for reviewing the order will be 90 days, the report said.

    Be American, Buy American

    It is stated that the administration has a wide-ranging supply chain effort underway for products in a variety of sectors seen as national security issues, including drugs, medical supplies, semiconductors and defense equipment.

    It is also pointed out that about 72% of pharmaceutical ingredient manufacturers supplying the U.S. are located overseas, including 13% in China.

    Peter Navarro, President Donald Trump’s trade advisor, is stated to be pushing for reducing the dependency of the U.S. on foreign-made drugs.

    This Big Pharma spin is simply a desperate attempt to stop President Donald J. Trump from moving the production of our essential medicines and medical equipment and supplies to the U.S,” Navarro is reported to have said.

    Navaro's executive order will streamline regulatory approvals for “American-made” products and look to impose similar FDA restrictions on U.S. facilities as those abroad. It will also encourage the U.S. government, including the Department of Defense, Department of Health and Human Services and Department of Veterans Affairs, to only buy American-made medical products.

    What about Indian Pharma stocks?

    This raises the million dollar question as to the fate of Indian Pharma stocks which are greatly dependent on the U. S. market for their survival.

    We will have to await details of the executive order and the opinion of experts before we take any call on the issue.