Lupin, Sun Pharma, Dr Reddy's: Pharma stocks trade mixed after Trump threatens 200% tariff; NIFTY PHARMA in the green

“We’ll be announcing something very soon on pharmaceuticals,” he said, increasing pressure on the sector. “We're going to give people about a year, year and a half to come in, and after that they’re gonna be tariffed if they have to bring the pharmaceuticals into the country at a very high rate, like 200 per cent," Trump said.

Last seen, the NIFTY PHARMA index was trading at 22,252.20, up 0.39%. Out of 20 constituents of the index, 12 advanced and eight declined. The top gainer on the index was Lupin (up 1.50%), followed by Biocon (up 1.18%), Aurobindo Pharma (up 1.05%), and Laurus Labs (up over 1%).

Lupin shares rallied as the pharma company has entered into a licence and supply agreement with Zentiva, k.s., for the commercialisation of Lupin’s biosimilar Certolizumab Pegol.

Certolizumab pegol is a drug that reduces the signs and symptoms of moderate to severe rheumatoid arthritis (RA), psoriatic arthritis (PsA), ankylosing spondylitis, and Crohn's disease. It works to improve such symptoms as joint swelling, pain, fatigue, and morning stiffness, explains Johns Hopkins Arthritis Centre.

The losers on the index were Ipca Labs, Gland Pharma, Dr Reddy's, and Zydus Life.

Indian Pharma Exports

According to an article by EximPedia, India's pharmaceutical exports surged 9.67% to $27.9 billion in 2023-24, despite a 3% drop in total exports. March data shows a 12.73% rise to $2.8 billion. With almost 31% of exports, the US continues to be the largest market, followed by the UK and the Netherlands.

EximPedia is a data-driven online platform offering comprehensive export-import trade insights from over 100 countries worldwide.

According to the Actiza Pharmaceutical website, India’s pharma industry is gaining influence in the global market, especially in North America. Indian pharma companies provide high-quality medications at economical pricing.

The Indian companies that have a presence in the North American market are Dr Reddy's Laboratories, Cipla, Sun Pharmaceutical, and Lupin Ltd.

"India is the leading supplier of generic medicines, producing about 20% of the global supply. It also plays a crucial role in vaccine production, delivering more than 50% of the world’s vaccines. India boasts high-quality, low-cost drugs, with over 741 US FDA-approved plants. India’s pharma sector grows, supporting affordable global healthcare," Actiza Pharmaceutical says.

Dr Reddy's Laboratories

Dr Reddy’s is a key player in both the United States and Canada. It offers a wide range of generics, biosimilars, and OTC products. They mark their presence with high-quality and affordable alternatives in the market, per the website.

Cipla

Cipla is well-established in North America, focusing on respiratory medicines, generics, and speciality drugs. Its focus on quality and innovation has increased its market share.

Sun Pharmaceutical

Sun Pharmaceutical Industries, India’s largest pharma company, specialises in generics, speciality medicines, and biosimilars. With a strong presence in over 100 countries, it is a leading player in the US generics market, renowned for innovation and high-quality manufacturing.

Lupin Ltd

Lupin is a global pharmaceutical leader, known for its strong portfolio in generics, branded generics, and biosimilars. With a focus on cardiovascular, diabetes, and respiratory care, it has a significant presence in North America and other international markets.

Implications of tariffs

Tariffs on Indian pharma companies, according to analysts, will not only hurt Indian drug manufacturers but also US consumers and pharmaceutical companies.

Initially, Indian firms may have to absorb some of the increased costs, but over the medium term, the situation could stabilise as the Trump administration might be forced to reconsider some of its trade policies, says a report by India's World magazine dated March 26, 2025.

For the long run, however, the Indian pharmaceutical industry should develop strategies to diversify export markets and establish more geographically distributed manufacturing hubs to mitigate future risks, the article says.

GST relief for pharma companies?

Another reason why pharma companies are in focus is that the Goods and Services Tax (GST) Council is likely to consider a clarificatory relief on the availability of Input Tax Credit (ITC) on free drug samples provided by pharma companies to doctors and hospitals.