The Trump administration has been considering a 100% tariff on imported branded and patented medicines, prompting global drugmakers to ramp up U.S. manufacturing and stockpile inventory.
Sun Pharma, India’s leading drugmaker, tumbled 5.3% to its day’s low of Rs 1,635 on the BSE. Divis Laboratories’ share price declined over 4% to its day’s low of Rs 5,648. Glenmark Pharma shares slipped 6% to an intraday low of Rs 1,967 on the BSE. Cipla dropped 2.5% to Rs 1,166 on Thursday.
Companies that do not have agreements and are not in negotiations with the administration will be subject to 100% tariffs, the report said. The plans are not final and could still change, and there could also be exemptions for some medicines and disease categories, Bloomberg’s report added.
Indian companies such as Sun Pharma are among the leading players with strong exposure to branded pharmaceuticals. In FY2025, the company’s US sales rose 5.8% to Rs 16,200 crore, accounting for 31% of its total revenue. The growth in the US market was primarily driven by its specialty portfolio.
Another factor weighing on pharma stocks is the sharp appreciation of the Indian rupee, which surged the most in over 12 years on Thursday after the Reserve Bank of India intensified its crackdown on speculative activity. The central bank extended curbs to offshore derivatives just days after tightening limits on banks’ onshore positions, further strengthening the currency.
The currency strengthened as much as 1.8% to 93.1738 per dollar, marking its biggest jump since September 2013, as trading resumed following a two-day break. The rally came even as most regional currencies remained under pressure, with US President Donald Trump signalling an escalation in the Iran conflict.Most large Indian pharma companies derive a significant portion of their revenue from overseas markets such as the US and Europe, with earnings largely denominated in dollars or other foreign currencies.
When the rupee strengthens, it leads to lower realisations in rupee terms. Revenue earned in dollars translates into fewer rupees upon conversion, directly impacting topline growth.
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