Pharma stocks fall; Aurobindo Pharma down over 4%

Pharma stocks declined on Wednesday, with Aurobindo Pharma tumbling over 4 per cent, after US President Donald Trump announced steep tariffs on imported generic medicines from August 2028, asserting that the move was aimed at onshoring the manufacturing of such pharmaceutical products.

The move could affect India, which is the largest exporter of generic drugs to the US. Shares of Aurobindo Pharma tanked 4.13 per cent, Glenmark Pharma edged lower by 3.26 per cent, Biocon went down by 3.18 per cent, Cipla slipped 2.54 per cent, Sun Pharma dropped 1.91 per cent, Dr Reddys Lab declined 1.86 per cent and Torrent Pharma dipped 1.38 per cent on the BSE.

In a post on Truth Social, Trump said beginning August 1, the US will continue to have a zero per cent tariff on all generic drugs brought into the country for two years, after which it will be raised to 100 per cent for one year, and 200 per cent thereafter.

“Effective August 1st, 2026, all Generic Drugs being brought into the United States will continue to have a TARIFF of ZERO PERCENT for two years, after which the TARIFF will be raised to 100 per cent for one year, and 200 per cent thereafter,” Trump said.

“This is done in order to RESHORE Generic Pharmaceutical Production into America, with a penalty to those Companies that decide not to build Plant and Equipment within the stated period of time given to them,” Trump said.

The president said the objective of this policy is to protect the people of the United States.

“Renewed concerns over potential US tariffs on generic pharmaceutical imports weighed on investor sentiment. The pharmaceutical sector led the decline, falling nearly 2 per cent in early trade,” Ponmudi R, CEO of Enrich Money, said.