Shares of Sun Pharmaceutical Industries Ltd dropped 2.61% to ₹1,585 in Friday’s early trade, September 26, after U.S. President Donald Trump announced a 100% tariff on imports of branded and patented pharmaceutical drugs starting October 1, 2025.
The U.S. is the largest market for Indian pharmaceutical exports, accounting for nearly one-third of the sector’s revenues. Sun Pharma, the country’s biggest drugmaker, derives a significant portion of its sales from the American market, making it particularly sensitive to policy shocks from Washington.
Trump’s statement on Truth Social clarified that the tariff would apply unless companies are “building” pharmaceutical plants in America, defined as projects under construction or having broken ground. While the order directly targets multinational giants in the branded drugs space, investors fear ripple effects on complex generics and speciality medicines exported from India, a segment where Sun Pharma has strong exposure.
Market participants caution that the move could raise drug prices in the U.S. while pressuring margins for Indian companies if they absorb some of the costs. Alongside Sun Pharma, other major drugmakers including Gland Pharma, Dr Reddy’s, Zydus Lifesciences, and Aurobindo Pharma also slipped in Friday’s session.
The Nifty Pharma index was down in tandem, highlighting broad concerns across the industry as traders brace for further volatility.
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