Pharma shares reminiscent of Solar Pharma, Dr. Reddy’s Labs, and Divi’s Labs plummeted on twenty sixth August. This occurred after US President Donald Trump vowed to slash drug costs within the US by an unprecedented 1,400–1,500 per cent (a determine virtually not possible as reductions can’t exceed 100 per cent).
The transfer might make exports to the US uncompetitive. Earlier, Trump had written to main international drugmakers — together with Johnson & Johnson, Pfizer, AstraZeneca, Bristol Myers, GSK, Merck, Novartis, Roche, and Sanofi — demanding worth cuts by twenty ninth September.
Trump’s newest remarks come as his administration adopts a harder stance on drug pricing. Moreover, they plan to impose greater tariffs on medicines imported from India and different nations.
In letters to main pharma corporations, Trump demanded “most-favored-nation” pricing for all Medicaid sufferers. This implies the US should get the bottom international charges. He set a twenty ninth September deadline for corporations to slash costs.
India–US Pharma Commerce
Prescription drugs are a key part of India’s exports to the US, valued at $11 billion in FY24. That is roughly 12% of the nation’s whole merchandise exports. The US accounts for practically one-third of India’s $31 billion in pharmaceutical exports. General, the US imports $180 billion value of medication every year, with India contributing 6%. Eire (28%) and Germany (21%) are the largest suppliers. Presently, pharmaceutical merchandise aren’t coated underneath the US’s new penal tariffs efficient from seventh August and twenty seventh August, 2025.
Pharma Inventory Picks
In Q1, US gross sales of B&Okay’s protection pharma corporations fell 2% to $2.5 billion. Lupin (+24%) and Torrent Pharma (+16%) outperformed, whereas others reported flat to marginally decrease gross sales.
At 1:30 PM, Solar Pharma slipped 3.15% to Rs 1,604.50. Dr. Reddy’s Labs fell 1.44% to Rs 1,265.40. Moreover, Divi’s Labs was down 0.77% at Rs 6,200.50 on NSE.
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