New Delhi, May 16 -- Generic drug companies in India are not expected to be affected by US President Donald Trump's new order to bring the prices for prescription (Rx) drugs in line with other developed nations, according to a report by HDFC Securities.

The report stated that the order aims to reduce the cost of prescription medicines in the US by matching them with the prices paid by other developed countries.

It said, "In our view, the generic companies are unlikely to have any impact".

This executive order introduces the "Most-Favoured-Nation (MFN)" price model. Under this model, the US will not pay more for drugs than the lowest price paid by other developed nations.

Earlier, this pricing model only applied to Medicare in 2020. No...