Trump’s 100% tariffs on pharma: Sun Pharma, Biocon, Cipla & other pharmaceutical stocks tank; jitters on D-Street
Pharma stocks hit by Trump’s tariffs: Pharmaceutical stocks declined sharply by up to 5% on Friday, September 26, following US President Donald Trump’s declaration of imposing 100% tariffs on branded and patent-protected medicines.Sun Pharma experienced the steepest decline, touching its yearly low at Rs 1,547, showing a 5% reduction from its last closing price. Biocon witnessed a 3.3% fall to Rs 344, whilst Zydus Lifesciences declined by 2.8%, settling at Rs 990.Aurobindo Pharma decreased by 2.4% to Rs 1,070, and Dr. Reddy’s registered a 2.3% decline to Rs 1,245.30. Both Lupin and Cipla saw a 2% reduction, ending at Rs 1,923.30 and Rs 1,480, respectively. Torrent Pharma showed the smallest decline of 1.5%, reaching Rs 3,480.65.At approximately 9:30 am, the Nifty Pharma index showed a reduction of 2.54%.
Trump Tariff Uncertainties Loom
As per the announcement on Truth Social platform, Trump declared that from October 1, all imported branded or patented medicines to the United States would face a 100% tariff, unless manufacturers establish production facilities within the country.Several prominent Indian pharmaceutical firms, including Sun Pharma, Dr. Reddy’s Laboratories, Cipla, Lupin, Aurobindo Pharma, and Zydus Lifesciences, maintain substantial export operations to the USA.Additional pharmaceutical entities such as Syngene, Gland Pharma, Biocon, and Piramal Pharma also generate considerable revenue from the American market, particularly through generics, speciality medications, and biosimilars.The announcement specifies that exemptions would be granted solely to companies that have initiated construction or are actively developing pharmaceutical manufacturing facilities in the U.S. This policy aims to strengthen domestic production whilst reducing dependence on international sources for premium, patent-protected medications.“There will, therefore, be no Tariff on these Pharmaceutical Products if construction has started,” the post clarified, defining “IS BUILDING” as having commenced physical construction or site development.The declaration is likely to affect Indian pharmaceutical companies that presently produce their branded medicines abroad for the American market. Share prices of businesses with substantial US export presence will be under close observation, alongside domestic medicine producers who could gain from possible alterations in worldwide supply networks.
