Shares of Aurobindo Pharma slipped 1.50% to ₹1,080.50 on Friday, inching closer to a 2% decline, as the Indian pharmaceutical sector reeled under pressure following U.S. President Donald Trump’s announcement of a 100% tariff on branded and patented drug imports starting October 1, 2025.
The move has raised concerns for Aurobindo, which derives a large portion of its revenues from the U.S. market. The company has a strong presence in generics and injectables in America, a space that could face indirect risks if the tariff regime extends beyond patented drugs.
India exported nearly $8.7 billion worth of pharma products to the U.S. in FY24, accounting for 31% of total exports. Aurobindo, along with peers like Dr. Reddy’s, Zydus Lifesciences, and Sun Pharma, has significant reliance on the American market, contributing 40–50% of their consolidated revenues.
Trump’s tariff announcement, while focused on branded and patented drugs, has triggered sector-wide nervousness over potential price hikes, tighter margins, and possible regulatory extensions to complex generics. The Nifty Pharma index mirrored this sentiment, trading lower as selling spread across frontline stocks.
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