Aurobindo, Cipla and other pharma shares fall up to 4% on this negative US development
Published on 06/05/2025 09:50 AM
Aurobindo, Cipla and other pharma shares fall up to 4% on this negative US developmentUS President Trump had earlier exempted the Pharma sector from tariffs during his Liberation day tariff announcements. However, the next day, he mentioned that Pharma as a sector is being investigated separately and tariffs will be at "never seen before levels."By Ekta Batra | Hormaz Fatakia May 6, 2025, 9:50:49 AM IST (Updated)2 Min ReadShares of India's drugmakers, Aurobindo Pharma, Sun Pharma, Cipla, Dr. Reddy's Laboratories, fell up to 4% on Tuesday, May 6, after a negative development from the US.
India's index for drugmakers reacted to US President Donald Trump signing an executive order to boost drug manufacturing in the US.
The order aims to reduce approval time for pharmaceutical plants to be set up in the US, compared to the current estimate of nearly five years.
Pharma is one sector that has not been subject to tariffs yet by the Trump administration, although the sector is currently under investigation by the Commerce Department for any potential tariff imposition in the future.
To avoid any potential tariffs, global pharma companies like Roche, Novartis, Eli Lilly and Johnson & Johnson have already announced investment plans worth up to $50 billion in the US, for Research & Development purposes, as well as to increase manufacturing in the country.
Additionally, the USFDA could also enforce stricter reporting by foreign API producers and non-compliant overseas plants could be listed publicly. This could also see surprise foreign inspections for Pharma companies.
Currently, the US imports over $200 billion worth of prescription drugs.
US President Trump had earlier exempted the Pharma sector from tariffs during his Liberation day tariff announcements. However, the next day, he mentioned that Pharma as a sector is being investigated separately and tariffs will be at "never seen before levels."
Since April 2, which was the day Trump announced his reciprocal tariffs, the Nifty Pharma index has gained 4%.
Shares of Aurobindo Pharma are down 3%, while those of Ajanta Pharma, Lupin, and peers saw losses between 2% to 3%.Continue ReadingFirst Published: May 6, 2025 8:15 AM ISTCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsBiocon share priceCipla sharesGlenmark PharmaNeuland LaboratoriesNifty PharmaSun Pharma Share Pricetrump tariffs