Shares of pharmaceutical companies on Friday tumbled more than 11 per cent amid reports that the Trump administration will soon announce tariffs on pharma imports.
According to reports, US President Donald 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 Marksans Pharma plummeted 11.18 per cent to `207 apiece, Laurus Labs by 7.40 per cent to `574.45, Shilpa Medicare by 6.56 per cent to `632, Ipca Labs by 6.53 per cent to `1,399.15, Aurobindo Pharma by 5.96 per cent to `1,106 and Lupin by 5.85 per cent to `1,972 per piece on the BSE.
In addition, Gland Pharma’s shares declined by 5.51 per cent to `1,475.90 per piece, Ajanta Pharma by 5.40 per cent to `2,480.05, Cipla by 5.32 per cent to `1,415.55, Biocon by 5.09 per cent to `327.95, and Wockhardt fell 5 per cent to hit its lower circuit level to `1,347.55 per share.
Among others, Divis Laboratories’ securities plunged by 4.70 per cent to `5,490.75 apiece, Dr Reddys Laboratories by 3.60 per cent to `1,109.75, and Sun Pharmaceutical Industries by 3.43 per cent to `1,709.40 per share on the exchange.
The BSE healthcare index declined 1,339.21 or 3.20 per cent to 40,531.58. The 30-share BSE Sensex tumbled 930.67 points or 1.22 per cent to 75,364.69.
Earlier, the Trump administration 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.
“With reports emerging of tariffs being imposed on the pharmaceutical sector, it is likely to affect Indian pharma firms. India supplies nearly half of all generic medicines to the US, where the lower cost alternatives account for 90 per cent of prescriptions.
“In order to leverage the tariff arbitrage opportunities, India must enhance its ease of doing business and create investment in logistics and infrastructure to create global manufacturing and export in the coming years,” Aamar Deo Singh, Senior VP Research at Angel One Ltd, said.
