Alkem, IPCA, Zydus: Pharma shares slip over 2%; here is why stocks are falling today

Pharma stocks on Monday, February 10, saw a decline of over 2% amid reports about the possibility of the US imposing tariffs on pharma imports.

The development comes after US President Donald Trump said he would announce 25% tariffs on all aluminium and steel products entering the country on Monday.

Trump also reaffirmed that he would announce “reciprocal tariffs”—“probably Tuesday or Wednesday”—meaning that the US would impose import duties on products in cases where another country has levied duties on US goods. "If they charge us, we charge them," he said.

“If they are charging us 130% and we’re charging them nothing, it’s not going to stay that way,” Trump further said.

Nifty Pharma during the intra-day trade was down 2.02% to 21,630.45-level.

Alkem Laboratories (-6.91%), IPCA Laboratories (-4.05%), Zydus Lifesciences (-3.45%), Ajanta Pharma (-3.10%), Divi's Laboratories (-3%) were among the biggest laggards of the sector.

However, big pharma firms like Lupin, Torrent Pharma, Cipla, DrReddy’s, and Sun Pharma were also trading negative, tanking as much as 2.05% on NSE.

Imposing tariffs will increase the export cost for many pharma companies thus affecting their margins as well.

Meanwhile, India's pharma exports are expected to double to $65 billion by 2030 and touch $350 billion in value terms by 2047, moving to the top five position globally by diversifying its product basket, according to a report from last week.

While India is the largest supplier of generic drugs globally, accounting for one in five generic drugs sold worldwide, the nation ranks 11th in terms of export value.

As per the Bain & Company's report on February 8, 'Healing the World: Roadmap for Making India a Global Pharma Exports Hub', India can potentially secure a position among the top five nations in export value by 2047 by innovating and diversifying its export basket to include specialty generics, biosimilars, and innovative products.

Indian Drug Manufacturers' Association (IDMA) National President Viranchi Shah highlighted that India can become one of the leaders in pharma exports, but needs strategic interventions.