Laurus Labs Downplays Impact Of New US Pharma Tariffs On Branded Drugs

Laurus Labs Ltd. does not anticipate any significant implications of the US tariff of 100% on branded or patented pharmaceutical products, according to a top executive.

"It is too early to comment, as the world needs to understand the process to be followed by the US. However, we don’t see any significant implication of the additional tariff announcements," Satyanarayana Chava, founder and chief executive officer, said in a statement.

The Trump administration will impose a 100% import tariff starting Oct. 1 on branded or patented drugs unless a company has or is building a manufacturing plant in the US. This presents a fresh challenge to Indian pharmaceutical companies.

The US is the largest market for Indian drugmakers. India exported $3.7 billion worth of pharma products to the US in the first half of 2025.

Lauras Labs derives 40% of its revenue from antiretroviral (ARV) drugs, which are a class of medications used to treat and prevent infections caused by retroviruses, most commonly the Human Immunodeficiency Virus (HIV). This segment remains insulated as most sales are to the African region, according to the CEO.

Non-ARV generics (27% of topline) continue to be exempted from US pharma tariffs. US generic margins are thin to absorb any import duty hike.

On the contract development and manufacturing operations (CDMO) side, which has a 33% share in total revenue, the company supplies intermediate, advanced intermediates, and APIs, but not finished formulations.

"Only around 5% of sales are shipped to the USA and we believe any tariff burden will likely be passed on to our clients," Chava said.