Ipca Laboratories Ltd.

By Kashish Tandon Bengaluru: Indian pharmaceutical stocks fell 4.4% on Friday, wiping out gains from the previous session, after U.S. President Donald Trump threatened steep tariffs on the sector. "Pharma (tariffs) is going to be starting to come in, I think, at a level that you haven't really seen before," Trump told reporters aboard Air Force One. "That will be announced in the near future, and is under review right now," Trump said. The index was among the top sectoral losers by percentage on the benchmark Nifty 50, which was down about 1.2% at 11:25 a.m. IST. All 20 constituents of the pharma index were trading in the red, with Sun Pharma , Dr Reddy's and Cipla being the biggest drags. Lupin, Aurobindo Pharma and Ipca Laboratories fell about 6.5% each, and were the top losers by percentage. Trump imposed a 10% tariff on most U.S. imports earlier this week, as well as much higher levies on dozens of rivals and allies alike, but temporarily exempted some goods, including pharmaceuticals, benefiting major exporters including India, Japan and Ireland. Pharma stocks were a rare bright spot on Thursday as global drugmakers gained on relief that their products remained temporarily shielded from the tariffs. However, executives and analysts had warned it was premature to celebrate as levies were still likely to come. "If these tariffs are introduced, the manufacturers will have no choice but to pass on the impact to consumers," said Vishal Manchanda, an analyst at Systematix Institutional Equities. Indian drugmakers have been on a 'wait and watch' mode and also raised concerns on the difficulty in setting up manufacturing in the U.S., a move that would increase their costs. Trump in his Wednesday address had predicted pharma companies would come "roaring back" to the U.S, and warned that "they got a big tax to pay" if they don't. (Reporting by Kashish Tandon in Bengaluru; Editing by Varun H K)

In a major shakeup for the pharmaceutical sector, shares of various companies plummeted by as much as 10% amid reports that the Trump administration is preparing to impose significant tariffs on pharmaceutical imports. This anticipated move has sent shockwaves through the market, prompting concerns about the future of the industry. Aurobindo Pharma saw the steepest decline, with its stock plunging 11% to ₹1,049.85 per share. Other companies weren't spared either; Laurus Labs dropped 9.5%, Ipca Labs fell by 9.3%, and Lupin dipped 8.41%. Biocon and Cipla also experienced significant decreases, with declines of 7.03% and 7%, respectively. The backdrop to this turmoil stems from President Trump's announcement of 26% reciprocal tariffs on imports from India, a move aimed at addressing perceived trade imbalances. This shift in policy comes after a brief period where pharmaceuticals were exempted from such tariffs, leading to previous gains in stock prices. As the BSE healthcare index fell by 3.22%, investors are left grappling with the implications of these tariffs. The market's reaction underscores the fragile nature of the pharmaceutical supply chain and raises questions about future pricing and availability of essential medications. With the potential for further volatility, stakeholders in the pharmaceutical industry are urged to closely monitor developments and prepare for the challenges that these tariffs may bring. The landscape is shifting rapidly, and the impact on both companies and consumers could be profound.

New Delhi: Shares of Pharmaceutical companies on Friday tumbled up to 10 per cent amid reports that the Trump Administration will soon announce tariffs on pharma imports and emphasised that the measures will be "unprecedented". According to reports, President Trump has said that tariffs on pharmaceuticals and semiconductors will be announced shortly, emphasising that the measures on pharmaceutical imports will be unprecedented. The US has announced 26 per cent reciprocal tariffs on India saying New Delhi imposes high import duties on American goods. Reacting to the reports the stock of Aurobindo Pharma plunged 11 per cent to ₹1,049.85 apiece on the, Laurus Labs tumbled 9.5 per cent to ₹561.55, Ipca labs decreased 9.3 per cent to ₹1,357.80, Lupin dipped 8.41 per cent to ₹1,918.20, Biocon 7.03 per cent to ₹321.25, and Cipla declined 7 per cent to ₹1,390.35. In addition, Marksans Pharma's shares depreciated 6.7 per cent to Rs 217.40 per piece, Dr Reddys Laboratories declined 6.5 per cent to ₹1,076.40 -- also its 52-week low -- Shilpa Medicare fell 6.4 per cent to ₹633, and Sun Pharmaceutical Industries slipped 6.33 per cent to Rs 1,658. Also, the scrip of Gland Pharma dipped 6 per cent to ₹1,468.25 per share, Ajanta Pharma fell 5.4 per cent to Rs 2,480.05, Wockhardt depreciated by 5 per cent to hit a lower circuit band of ₹1,347.55 on the exchange. In Morning trade on Friday, the BSE healthcare index declined 1,347.88 points or 3.22 per cent to 40,522.91, while the 30-share BSE Sensex slumped 680.18 points or 0.89 per cent to 75,615.18. Earlier, the Trump administration had exempted pharmaceuticals and semiconductors from the reciprocal tariff policy. Accordingly, shares of Pharmaceutical companies on Thursday had settled with gains of as much as 7 per cent.