Lagatar24 Desk
New Delhi: US President Donald Trump’s decision to impose 100% tariffs on branded and patented drug exports has shaken Indian pharmaceutical markets, despite most of India’s $10 billion US sales being in generics. The uncertainty lies in whether complex generics and specialty medicines will be included, a move that could directly impact leading players like Sun Pharma, Dr. Reddy’s, Cipla, Zydus Lifesciences, and others.
Stocks Facing Highest Exposure
Dr. Reddy’s emerges as the most vulnerable, with 47% of its earnings tied to the US market, projected at $1.5 billion in FY26. Sun Pharma follows, with 37% dependence on US revenues worth $2.1–2.3 billion. Specialty brands like Ilumya, manufactured outside the US, are at risk, though analysts suggest chronic therapies may retain demand even with tariffs. Cipla, with about 30% exposure, benefits from its Invagen US facilities, partially insulating it from risk.
Impact on Other Pharma Companies
Zydus Lifesciences, projecting $1.3 billion in US revenues, has limited US-based manufacturing, leaving it highly exposed. Aurobindo Pharma’s $1.6 billion US sales gain some cover from three US facilities, though current output is modest. Lupin, Glenmark, Alkem, Torrent, and Gland Pharma each face varying risks, depending on the extent of their US dependence and local manufacturing base. Gland Pharma’s injectable business is relatively safer due to fewer competitors, mostly Chinese firms, who themselves face steep tariffs.
Analyst Views and Exemption Route
Market experts suggest near-term impact may remain limited as India primarily exports generics. Still, if Trump extends tariffs to complex generics and biosimilars, the pressure could escalate. A potential relief comes from exemptions for firms investing in US-based manufacturing plants, which could safeguard future earnings.
