Dr. Reddy’s Laboratories shares fall over 2% after Trump announces 100% tariff on pharma products

Shares of Dr Reddy’s Laboratories, the country’s leading drug maker, declined as much as 2.27% to hit an intra-day low of ₹1,246.2 apiece on the National Stock Exchange (NSE) on Friday, September 26. The plunge in stock price came after US President Donald Trump on Thursday threatened 100% tariffs on pharmaceutical products.

The stock was trading 1.74% lower at ₹1,253 apiece at 2:30 PM.

President Trump posted on the social media platform Truth Social, “Starting October 1, 2025, we will be imposing a 100% tariff on any branded or patented Pharmaceutical product, unless a company is building their pharmaceutical manufacturing plant in America. “Is building” will be defined as “breaking ground” and or “under construction”. There will, therefore, be no Tariff on these Pharmaceutical products if the construction has started.”

Indian Pharmaceutical companies heavily rely on the US for their pharmaceutical exports and other regulatory approvals from the industry body, the USFDA. However, Indian pharmaceutical exports are heavily reliant on the US for the generic pharmaceutical product categories, which are currently not under the ambit of tariffs. However, certain pharmaceutical companies are still exposed to the new tariffs announced overnight.

The measure of pharma stocks on the NSE, NIFTY Pharma index, declined over 2 %. Laurus Labs (-5.8%), Biocon (-4.5%), Zydus Lifesciences (-3.9%), Granules India (-3.34%), Glenmark Pharmaceuticals (-3%), Divi’s laboratories (-2.9%) were the top losers in the index.

On September 16, Dr. Reddy’s Laboratories launched its new drug for acid peptic disease, Tegoprazan, in India under the brand name PCAB (50 mg). The drugmaker stated that Tegoprazan is already approved in 21 countries, including South Korea and China, and is undergoing registration in several others. The company also noted that the molecule has successfully completed a Phase III trial in the United States, as mentioned in their press release.

Earlier this month, the company entered a definitive agreement with Johnson & Johnson affiliate Janssen Pharmaceutica NV (JPNV) to acquire the Stugeron brand for $50.5 million or approximately ₹445 crore.

Dr. Reddy’s Laboratories share price

Over the last five trading sessions, Dr. Redy’s Laboratories’ shares declined 4.38% and further dropped 0.70% over the past month. However, the scrip gained 7.70% over the past six months, while it further declined 8.38% on a year-to-date basis.

The stock touched its 52-week high of ₹1,405.90 on January 8, 2025 and its 52-week low of ₹1,020.00 on April 7, 2025. The company’s market capitalisation stands at ₹1,04,677.26 crore as recorded on September 26.