Shares of Natco Pharma Ltd dropped 5% to ₹794.75 on Friday, falling ₹41.80 from the previous close of ₹836.55, as investor sentiment soured after U.S. President Donald Trump indicated his administration is reviewing pharmaceutical-specific tariffs.
Trump, speaking to reporters aboard Air Force One, warned, “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.”
This marked a reversal from Thursday, April 3, when Indian pharma stocks had rallied after Trump’s reciprocal tariff list excluded pharmaceuticals. However, the relief proved short-lived as the sector now appears headed for scrutiny under Section 232 of the Trade Expansion Act of 1962, which empowers the U.S. President to restrict imports that may threaten national security.
Citi analysts believe pharma companies may try to pass tariff costs to payors, but warn that a full pass-through is unlikely, meaning supply chains may bear part of the burden.
Natco Pharma is considered one of the most vulnerable Indian players, with market experts estimating that nearly 70% of the company’s revenue is derived from the U.S. market.
On Friday, the stock traded between ₹796 and ₹842.85 with a volume of 817.62K shares. Natco’s market capitalization now stands at ₹14,279 crore.
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