Shares of Glenmark Pharmaceuticals Ltd fell 4.35% to ₹1,478.00 on Friday, shedding ₹67.25 from the previous close of ₹1,545.25, after U.S. President Donald Trump reignited fears of potential tariffs on pharmaceutical imports. The drop came despite the stock gaining around 3.5% on Thursday, when pharma shares had rallied on the assumption that the sector had been temporarily exempted from reciprocal tariffs.
Trump, while addressing reporters aboard Air Force One, warned, “Pharma tariffs are going to come in at levels you haven’t really seen before. We are looking at pharmaceuticals as a separate category. We will be announcing that sometime in the near-future and not too distant future. It’s under review right now.”
The announcement wiped out gains across the Indian pharmaceutical sector, which had rallied Thursday, April 3, after initial White House communication excluded pharmaceuticals from immediate tariff action. However, the exemption is now being viewed as temporary.
Trump’s administration is also reviewing sector-specific tariffs under Section 232 of the Trade Expansion Act of 1962, which allows restrictions on imports deemed to pose a threat to national security.
Citi noted that pharma companies may find it difficult to pass on the cost of tariffs to patients or insurers, potentially forcing supply chains to absorb the cost increases, impacting margins.
Nomura maintained a cautiously optimistic stance on Glenmark, stating the company has moderate U.S. exposure. It estimated FY26 and FY27 U.S. revenues at $393 million and $461 million, respectively. However, the brokerage flagged that Glenmark’s Monroe manufacturing facility in the U.S. is currently non-contributory due to an FDA warning letter. If cleared, the site could contribute up to 5–10% of Glenmark’s revenues by FY27.
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