Indian pharmaceutical stocks came under intense pressure in morning trade on April 4, 2025, after former US President Donald Trump hinted at imposing sweeping tariffs on pharmaceutical imports. His statement, delivered while speaking to reporters aboard Air Force One, triggered panic selling across the sector, which derives a significant share of revenue from exports to the United States.
“Pharma tariffs are going to come in at levels you haven’t really seen before. We are looking at pharmaceuticals as a separate category. We will be announcing that sometime in the near future and not too distant future. It’s under review right now,” Trump said, adding to investor fears.
By 10:08 AM, Aurobindo Pharma had slipped 8.06 percent to ₹1,081.50, leading the decline. Lupin dropped 6.72 percent to ₹1,954.85, while Divi’s Laboratories fell 5.94 percent to ₹5,420.90.
Selling was broad-based across the sector. Ipca Labs tumbled 6.86 percent to ₹1,394.80, followed by Zydus Life, which lost 6.47 percent to ₹843.55. Biocon was down 5.71 percent at ₹326.00, and Cipla declined 5.40 percent to ₹1,415.00.
Blue-chip names such as Dr. Reddy’s Laboratories fell 4.63 percent to ₹1,098.15 and Sun Pharma lost 4.56 percent to ₹1,689.20. Alkem Labs declined 3.65 percent to ₹4,790.00, while Glenmark Pharma shed 3.70 percent to ₹1,488.05 and GlaxoSmithKline Pharma slipped 3.51 percent to ₹2,756.35.
Even typically stable names saw red. Abbott India dropped 1.42 percent to ₹29,485.45 and Torrent Pharma declined 1.35 percent to ₹3,203.80. Mankind Pharma remained relatively resilient, down just 0.20 percent at ₹2,422.80.
The sharp correction reflects investor concerns over a potential tariff regime that could significantly impact margins for Indian drugmakers, many of whom generate between 10 to 50 percent of their revenue from the US. The uncertainty around the scale and timing of the announcement is weighing on sentiment, despite India’s strong manufacturing base and cost competitiveness in generics.
