Indian pharmaceutical shares dropped ~2.6% after U.S. President Trump announced a 100% tariff on branded and patented drugs, effective October 1.
All 20 stocks in India’s pharma index fell, with Sun Pharma losing ~3.4%.
The U.S. accounts for over a third of India’s pharma exports (mostly generics) — worth ~$10.5 billion in FY25.
Analysts believe that in the near term, generics may be spared, but complex generics & biosimilars face uncerta
inty.
The tariff shock adds to existing stresses from global volatility and weak foreign flows.
Some pharma firms may see margin pressure or pricing disruptions in upcoming quarters.
Investors will closely watch U.S. trade rules/regulations defining “branded / patented”
status.
Stocks with a more domestic or diversified focus may fare better in this environment.
The broader market opened lower as pharma drag spread to other sectors.
Overall, the tariff surprise introduced a fresh overhang for export-link
ed and healthcare names.