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Trump Tariffs on Pharma Companies: Market expert and Zee Business Managing Editor Anil Singhvi warned that Indian pharma stocks could face short-term volatility after US President Donald Trump announced a 100 per cent tariff on branded and patented drugs imported into the United States, effective October 1, 2025.

Singhvi emphasized that companies with US manufacturing plants or under-construction facilities are exempt, reducing their exposure. “While the announcement may spook the market, fundamentally strong firms with US operations remain well-positioned,” he noted.

According to the Pharmaceuticals Export Promotion Council of India, the US imported $233 billion in drugs in 2024, with India exporting $27.9 billion, including $8.7 billion to the US, roughly 6–7 per cent of total US pharma imports.

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Singhvi explained that India’s share in branded exports is relatively smaller, limiting direct impact. “Volume is significant, but value exposure is moderate, which cushions Indian pharma stocks,” he said.

Using IQVIA data, Singhvi pointed out that generics (47 per cent) and biosimilars (15 per cent) dominate India’s US exports.

“These segments are exempt from tariffs,” he said. “Companies like Aurobindo Pharma, Cipla, and Dr Reddy’s, which focus on generics, will see minimal fundamental risk. The short-term sell-off is mostly sentiment-driven.”

Singhvi stressed that companies with US manufacturing operations will likely be insulated from the tariff impact. These include:

1) Cipla

2) Dr Reddy’s

3) Lupin

4) Syngene

5) Piramal Pharma

6) IPCA Labs

7) Glenmark Pharma

8) Biocon

He added, “Biocon commissioned a US plant this month, and IPCA Labs has partnered with BioSimilar Sciences, further reducing their tariff exposure.”

Singhvi cautioned that negative sentiment may pressure Indian pharma stocks temporarily, similar to IT companies after visa-related news.

“Investors should focus on fundamentally strong companies and consider accumulating positions during dips caused by market sentiment rather than actual risk,” Singhvi advised.

Singhvi singled out companies with US plants or heavy generic export exposure as investment candidates:

1) Cipla

2) Dr Reddy’s

3) Lupin

4) Syngene

5) Piramal Pharma

6) IPCA Labs

7) Glenmark Pharma

8) Aurobindo Pharma

9) Biocon

He reiterated, “These firms are structurally insulated from US tariff risks, and short-term dips could present attractive buying opportunities.”

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Senior Sub-editor at Zee Business English

shweta.shukla@India.com

Shweta Birendra Shukla is a journalist covering the stock market and corporate affairs, with prior stints at Business ...LATEST NEWSBy accepting cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.