Shares of Dr. Reddy’s Laboratories fell 2.09% to ₹1,248.10 on Friday, as the broader pharmaceutical sector came under pressure following U.S. President Donald Trump’s announcement of a 100% tariff on branded and patented pharmaceutical imports, effective October 1, 2025.
The U.S. is India’s largest pharma export market, accounting for nearly one-third of the country’s $27.9 billion shipments in FY24. Dr. Reddy’s, which earns a substantial part of its revenue from the American market through generics and specialty medicines, is seen as one of the key Indian companies exposed to the policy shift.
Although Trump’s directive primarily targets branded and patented drugs, uncertainty looms over whether complex generics and specialty categories could be impacted. With nearly 45% of generic drugs in the U.S. being sourced from India, any disruption could weigh on companies like Dr. Reddy’s, which have steadily expanded their U.S. portfolio.
The selloff in pharma counters reflects investor concerns about margin compression, higher compliance costs, and possible renegotiations on supply contracts. Analysts note that American consumers may also face higher drug prices, given their reliance on Indian low-cost generics.
The Nifty Pharma index was down in early trade, mirroring weakness across frontline companies such as Sun Pharma, Zydus Lifesciences, and Gland Pharma, alongside Dr. Reddy’s.
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