Shares of Sun Pharmaceutical Industries Ltd surged 5.20% to ₹1,802.80 in early trade on April 3 after the White House confirmed that pharmaceutical products will not be subject to the 26% reciprocal tariffs imposed on Indian goods. The exemption has provided short-term relief to the Indian pharma sector, especially large players with significant exposure to the U.S. market.
The broader Liberation Day tariff plan announced by U.S. President Donald Trump on April 2 introduced a steep 26% tariff on imports from India, aimed at countering what he called unfair trade practices and currency manipulation. However, a White House factsheet clarified that certain goods, including pharmaceuticals, copper, semiconductors, and lumber, would be excluded from the new duties.
Brokerages welcomed the decision. Jefferies called the move “cautiously optimistic,” stating that while the exemption has averted a short-term crisis, medium-term risks remain if pharma-specific tariffs are added later. Meanwhile, Nomura estimated Sun Pharma’s U.S. sales at $2.1 billion in FY26 and $2.3 billion in FY27, with specialty brands contributing 55-57% of revenues.
According to Nomura, only 10% of Sun Pharma’s U.S. specialty revenue is formulated within the U.S., with the majority of production outside, including Ilumya—its largest-selling product—likely being produced in Ireland. Given that Ilumya is a chronic therapy, Nomura believes Sun Pharma may be able to pass on any potential cost impacts and retain volume, although market share gains may slow if U.S.-based competitors benefit from lower production costs.
On the generics side, Nomura estimates 20% of U.S. generic sales are produced within the U.S., primarily at the Ohm Labs facility. It also notes that Taro, which contributes 35-40% of Sun’s generic revenue, manufactures about half its U.S. sales in Canada, a country now facing a 25% tariff, potentially eroding its competitive edge.
Despite these complexities, Sun Pharma’s diverse global footprint and strong earnings base from India and other emerging markets make it relatively resilient to U.S. tariff disruptions.
As of the latest session, the company’s market cap stood at ₹4.31 trillion, with the stock trading within a 52-week range of ₹1,377.20 to ₹1,960.35.
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