Europe: India pharma’s hedge…

Indian generics have long feasted on the US; 40% of the market, fat margins, and scale. But with tariffs and “localisation” talk heating up, companies are leaning harder into Europe.

On paper, it’s smart strategy: diversify dossiers, win tenders, balance capacity. Europe provides stability, ageing populations, and a unified regulatory framework.

But, you see, Europe isn’t the US.

- Prices are thinner and payers squeeze relentlessly.

- There are many different market archetypes; some requiring huge A&P and salesforce investment. Indian companies are not used to these.

- Volumes are stable but not explosive.

- Margins are defensive, not expansive.

So yes, Europe acts as an insurance policy, a buffer against US shocks. But it’s not a substitute for the US profit engine. The real play is optionality: the ability to swing supply between the US and EU, keeping factories humming and balance sheets steady.

Bottom line: Europe is the shock absorber. The US is still the growth engine. Smart Indian Pharma knows it needs both.