Indian pharmaceutical stocks declined in early trade on Wednesday following renewed concerns over potential U.S. import tariffs. At 9:36 AM, Aurobindo Pharma shares were down 2% to ₹1,073.15, Dr. Reddy’s fell 3% to ₹1,077.50, Zydus Lifesciences dropped 2% to ₹841.75, and Lupin declined 2% to ₹1,935. Sun Pharma and Cipla also slipped 1% each, trading at ₹1,668.35 and ₹1,412.05 respectively.
The sector came under pressure after former U.S. President Donald Trump stated plans to introduce tariffs on pharmaceutical imports. Speaking at a National Republican Congressional Committee event, Trump said, “We’re gonna tariff our pharmaceuticals,” signaling potential policy shifts ahead of the U.S. presidential elections.
Although no official details have been released, Indian pharma companies — key suppliers of generic drugs to the U.S. — are considered at risk. According to CLSA, a 30% tariff could erode earnings by 24% to 45%, while a 40% duty might impact Aurobindo by up to 80% and Zydus by 47%.
CLSA notes that the likelihood of steep tariffs is low, given India’s crucial role in U.S. healthcare cost savings. However, the uncertainty may continue to pressure stock sentiment in the near term.
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