U.S. President Donald Trump’s announcement of a 100% tariff on imported branded drugs, effective October 1, 2025, has put Sun Pharma in the focus among Indian pharmaceutical companies.
Market experts highlight that there will be zero impact on generic drug exports from India, as the tariffs apply only to branded and patented formulations. Most Indian pharma majors, including Lupin, Dr. Reddy’s, Cipla, and Aurobindo, are primarily generic-focused, shielding them from direct exposure.
However, Sun Pharma is the only Indian company with branded and patented product sales in the U.S. market. While this makes it more exposed than peers, analysts note that the company outsources a significant portion of its speciality product manufacturing through contract manufacturing (CMO) facilities located across the U.S. and Europe.
This outsourcing structure could mitigate the immediate tariff risk, but clarity from Sun Pharma’s management will be key in the coming days to assess the exact impact. For now, investors are expected to closely track regulatory updates and the company’s commentary on potential exposure.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Stock market investments are subject to risks. Please consult a financial advisor before making any investment decisions.
