Trump’s pharma tariffs: In a dramatic improvement, the US President Donald Trump introduced 100% conditional tariffs on the pharma imports from 1st October 2025. The US President made this announcement on Thursday from his social media deal with, which triggered panic promoting on Friday within the pharma phase. Indian Pharma majors, particularly Solar Pharma, Aurobindo Pharma, Cipla, Dr Reddy’s Lab, Gland Pharma, Zydus Life and Lupin, account for round 70% of the medication exported to the US. Nonetheless, inventory market consultants imagine that Indian pharma corporations may even see a pointy turnaround on Monday as they’re anticipated to flee the newest Trump tariff shock. They mentioned {that a} 100% tariff on pharma imports is conditional, as will probably be levied on the patent and branded medication, whereas the Indian corporations are primarily within the generic drug exports to the US.
Why Indian pharma might escape Trump’s tariff shock?
Anticipating a negligible influence on the Indian pharma corporations from Trump’s pharma tariffs, Tushar Manudhane, Senior Vice President, Institutional Analysis Analyst – Healthcare at Motilal Oswal, mentioned, “Given the duties introduced are on branded/patented medication, there can be no influence on the generics exports executed by Indian pharma corporations. The foremost portion of exports to the US is generic drugs. So we imagine it’s enterprise as common for generic pharma corporations. Even regarding CDMO corporations, they make a part of the product, not the formulation for Innovator/world pharma corporations. Additionally, CDMO corporations cater to the worldwide necessities of innovator pharma corporations and never simply the US market.”
The Motilal Oswal professional added that the uncooked materials of innovator corporations is about 4-5% of gross sales. Provided that altering the uncooked materials supply is a long-drawn train with a number of hurdles comprising functionality, capability, and compliance, the innovator can both take in the associated fee or cross it on to the shopper. The innovator has a restricted patent exclusivity interval and wish to use this time to maximise gross sales. We nonetheless await the chief order for an in depth understanding of the tariff on medication.
Echoing Tushar Manudhane’s views, Avinash Gorakshkar, an SEBI-registered basic analysis analyst, mentioned, “India primarily exports generic medication to the US, and round 3% of the online drug export from India to the US would fall underneath this conditional Trump’s pharma tariffs.”
Pharma shares to be in deal with Monday
On shares which will come underneath the bulls’ radar on Monday, Avinash Gorakshkar mentioned, “Zydus Life, Aurobindo Pharma, Dr Reddy’s Lab, Lupin, Solar Pharma, Cipla, and Gland Pharma represent round 70% of the overall exports to the US. These Indian pharma shares witnessed heavy beating throughout Friday’s offers. After clarifying the conditional Trump’s pharma tariffs, we count on a pointy rebound in these Indian pharma majors.”
The US accounted for 34.60% of India’s whole drug exports in FY25. Nonetheless, India’s pharma exports to the US dropped from $745 million in Could 2025 to $646.60 million in August 2025. Specialists see this dip primarily as a result of rising commerce conflict and the delay within the India-US commerce deal.
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