Shares of Indian pharmaceutical corporations dropped by as a lot as 7 p.c on Monday, twelfth Might, after the US President Donald Trump introduced plans to signal an government order geared toward considerably lowering the price of prescription and branded medicine — by anyplace between 30 p.c and 80 p.c, efficient instantly.
Whereas the Nifty Pharma index has remained comparatively regular over the previous month, it has declined by over 10 p.c for the reason that starting of 2025. Monday’s buying and selling noticed the index fall by an extra ~2.4 p.c.
President Trump additionally revealed plans to implement a “most-favoured nation” pricing technique, below which the U.S. would pay the identical worth for prescribed drugs because the nation providing the bottom worth globally. He claimed the measure would lower healthcare prices within the U.S. to ranges beforehand unimaginable.
This initiative seems to primarily goal high-cost, branded, and progressive medicine. Though generic medicine already play a task in making post-patent remedies extra reasonably priced within the U.S., sometimes lowering costs by 80 p.c to 90 p.c, the brand new coverage may nonetheless have an effect on international pricing methods.
The choice is more likely to negatively have an effect on Indian pharmaceutical corporations like Solar Pharma, Dr. Reddy’s, and Cipla, which earn a big share of their income from the U.S. generics market.
Following are just a few pharma shares that noticed steep declines on Monday regardless of an in any other case upbeat broader market falling by as much as 7 p.c on Monday:
With a market cap of Rs. 69,455 crores, the shares of an built-in international pharmaceutical firm moved down by practically 4 p.c on BSE to hit an intraday low at Rs. 1,120 on Monday.
With a market cap of Rs. 91,974 crores, the shares of a worldwide pharmaceutical chief moved down by practically 3 p.c on BSE to hit an intraday low at Rs. 1,973.95 on Monday.
With a market cap of Rs. 39,007 crores, the shares of a research-led, international pharmaceutical firm moved down by practically 2.5 p.c on BSE to hit an intraday low at Rs. 1,360 on Monday.
With a market cap of Rs. 4.04 lakh crores, the shares of the world’s main specialty generics firm moved down by practically 7 p.c on BSE to hit an intraday low at Rs. 1,623.5 on Monday.
With a market cap of Rs. 39,475.7 crores, the shares of an innovation-led international biopharmaceuticals firm moved down by practically 4 p.c on BSE to hit an intraday low at Rs. 317.9 on Monday.
With a market cap of Rs. 27,331.3 crores, the inventory moved down by practically 3.4 p.c on BSE to hit an intraday low at Rs. 1,041.65 on Monday. Cohance Lifesciences Restricted, previously Suven Prescription drugs Restricted, is a number one technology-driven CDMO, offering built-in options in customized synthesis, course of R&D, and manufacturing for international innovators.
Written by Shivani Singh
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