Jefferies has taken a cautiously optimistic view on the Trump administration’s tariff strategy, stating that Indian pharma companies can breathe easy for now, as no direct tariffs have been imposed on the sector. The brokerage believes that the current policy setup results in minimal immediate impact for Indian pharmaceutical exporters.

However, Jefferies adds a note of caution, warning that pharma-specific tariffs at a later stage cannot be ruled out entirely, keeping the medium-term outlook slightly clouded.

In the short term, Jefferies expects a positive reaction in US-focused generic pharma stocks, given the temporary exclusion of pharmaceuticals from the tariff list. This could drive a sentiment-driven rally in several names with significant exposure to the U.S. market.

The brokerage also highlighted FY25 estimated U.S. sales contributions of key Indian pharma firms:

  • Syngene – 68%

  • Gland Pharma – 54%

  • Biocon – 50%

  • Zydus Life – 45%

  • Dr. Reddy’s – 43%

  • Piramal Pharma – 41%

  • Lupin – 35%

  • Sun Pharma – 30%

  • Cipla – 28%

  • Alkem – 20%

  • Laurus Labs – 17%

These figures underscore the critical importance of the U.S. market to India’s pharmaceutical exports, especially for generics. While the current exemption provides relief, Jefferies advises staying alert to policy shifts as the trade situation evolves.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Stock market investments are subject to market risks. Please consult a qualified financial advisor before making any investment decisions.

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