Dr. Reddy's (RDY) Warns U.S. Generic Drug Prices to Rise 100% by 2028

Dr. Reddy's Laboratories CEO Erez Israeli stated that proposed tariffs on generic drugs will lead to increased prices in the U.S. Starting August 1, 2026, a 100% tariff will take effect on imports, escalating to 200% in August 2029. Israeli noted that generic drugs, which constitute a low-margin business, cannot absorb such tariffs. Currently, sales of generic drugs to the U.S. make up 27% of Dr. Reddy's total sales, down from 50% a few years ago. These developments may impact pricing strategies across the U.S. pharmaceutical market for ordinary consumers.