Dr Reddy’s Laboratories saw its stock decline by 4% after U.S. President Donald Trump signaled plans to impose tariffs on pharmaceutical imports. Speaking at a National Republican Congressional Committee event, Trump stated, “We’re gonna tariff our pharmaceuticals,” raising concerns among investors about potential duty hikes on drug imports.
While no specific measures have been announced yet, the remarks come shortly after the U.S. imposed a 104% tariff on select Chinese goods. Indian pharmaceutical companies, including Dr Reddy’s, are key exporters of generic drugs to the U.S., making them particularly sensitive to any potential tariff changes.
Analysts at CLSA noted that under a hypothetical 30% tariff scenario, Indian pharma companies could face earnings declines ranging from 24% to 45%. However, the firm also highlighted that the probability of such steep tariffs remains low due to Indian generics’ critical role in the U.S. healthcare system.
Indian drugmakers reportedly account for around 46% of generic savings in the U.S., which may deter aggressive tariff actions due to concerns around healthcare affordability and supply stability.
Dr. Reddy’s shares opened at ₹1,094.50, hitting a high of ₹1,094.55 and a low of ₹1,061.65 today. The stock remains volatile, trading closer to its 52-week low of ₹1,020.00 than its high of ₹1,421.49.
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