Indian pharmaceutical stocks came under heavy selling pressure on Friday, September 26, after U.S. President Donald Trump announced a 100% tariff on imports of branded and patented pharmaceutical drugs, effective October 1, 2025. The move has spooked investors as the U.S. remains the largest export market for Indian pharma companies.
Gland Pharma led the fall, tumbling 4.03% to ₹1,892.50. Sun Pharma followed, slipping 2.61% to ₹1,585. Dr Reddy’s Laboratories declined 2.09% to ₹1,248.10, while Zydus Lifesciences was down 2.26% to ₹996.20. Aurobindo Pharma also shed 1.50% to ₹1,080.50, nearing a 2% drop in early trade.
India exported $8.7 billion worth of pharmaceutical products to the U.S. in FY24, accounting for 31% of its total pharma exports. Companies like Sun Pharma, Dr Reddy’s, Aurobindo Pharma, Zydus Lifesciences, and Gland Pharma earn anywhere between 30–50% of their revenues from the American market.
While the new tariffs are aimed at branded and patented drugs—primarily dominated by global giants—uncertainty prevails on whether complex generics and biosimilars from Indian companies could also face tighter scrutiny. Analysts caution that higher tariffs could lead to increased drug prices and shortages in the U.S., while Indian firms may see margin pressures if they are forced to absorb some of the costs.
The Nifty Pharma index reflected the broad weakness, with all major constituents trading in the red. Investors are bracing for heightened volatility in pharma counters until there is more clarity on the exact scope of the U.S. tariffs.
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