Pharma stocks: Gland Pharma, Lupin, Sun Pharma, others fall up to 5% as Donald Trump to announce pharma tariffs

Indian pharma stocks, including Sun Pharmaceutical Industries, Gland Pharma, Lupin and others traded sharply lower on Wednesday after the US President Donald Trump said he will soon announce a ‘major’ tariff on pharmaceutical imports. Fall in pharma stocks dragged the Nifty Pharma index more than 2% lower.

Gland Pharma share price declined as much as 5.99%, Aurobindo Pharma stock price declined nearly 5%, while Biocon shares plunged over 4%.

Other pharma stocks such as Laurus Labs, Lupin, Zydus Lifesciences, Granules India, Dr Reddy’s Laboratories, Ipca Laboratories and others were also trading more than 2-3% lower.

The Nifty Pharma index declined as much as 2.64%.

Trump Announces Tariffs on Pharma

Speaking to an event at the National Republican Congressional Committee, Trump said the tariff will incentivize drug companies to move their operations to the US, Reuters reported.

President Donald Trump's sweeping reciprocal tariffs on dozens of countries are scheduled to take effect on Wednesday, including a substantial 104% duty on Chinese goods. This move marks an escalation in the ongoing global trade conflict, even as the administration signals a willingness to engage in negotiations with select nations.

The latest round of tariffs, announced by Trump on April 2 and referred to as “Liberation Day,” forms part of his broader “reciprocal” trade strategy. Under this plan, the US will impose a minimum tariff of 10% on nearly all of its trading partners, with significantly higher rates targeting countries that maintain trade surpluses with the US. The baseline 10% tariff was implemented on Saturday.

Pharma Stocks to be Impacted

According to a report from Geojit Financial Services highlighting the major sectors that will be impacted by the US tariffs, several leading Indian pharmaceutical companies derive a significant portion of their revenue from the United States

Zydus Lifesciences tops the list with 47% of its revenue coming from the US, closely followed by Aurobindo Pharma at 46%. Dr. Reddy’s Laboratories and Lupin also show considerable exposure at 41% and 38% respectively. Sun Pharma and Cipla, two of the biggest names in the industry, earn 32% and 30% of their revenues from the US market.

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