Jefferies has weighed in on recent concerns regarding proposed US tariffs on imported pharmaceutical products, suggesting that generic pharma companies may avoid the brunt of any such policy. The brokerage noted that while the US President has signaled potential action on pharma imports, the focus appears to be more targeted at facilities based in China and Ireland, particularly those leveraging tax havens for tax optimization.
Given the critical role of the generic pharmaceutical industry in reducing drug costs in the US, Jefferies believes this segment is likely to be treated more favorably in any eventual policy framework. As a result, the brokerage does not rule out a potential rally in US-focused generic pharma stocks, especially if further clarity confirms limited direct impact from the proposed tariffs.
The commentary adds a layer of optimism for Indian and other generic drugmakers with significant US exposure, amid recent volatility in the broader pharma space.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a qualified financial advisor before making any investment decisions.
