Trump Tariffs: Dr Reddy's To Lupin — Pharma Stocks To Be In Focus After Threat Of 200% Levies
Trump's threat of a 200% tariff on pharmaceutical products can have severe implications on Indian drugmakers, as exports to the US form a significant share of their overall sales.
Shares of companies like Gland Pharma Ltd., Aurobindo Pharma Ltd., Dr. Reddy's Laboratories Ltd., Zydus Lifesciences Ltd., Lupin Ltd., Glenmark Pharmaceuticals Ltd., Sun Pharmaceuticals Industries Ltd., Cipla Ltd. and Torrent Pharmaceuticals Ltd. will be in focus on Wednesday after US President Donald Trump threatened to slap 200% tariffs on pharmaceutical products.
The announcement came in in a press briefing following a Cabinet meeting, where he also announced a 50% tariff on copper imports.
Trump's threat of a 200% tariff on pharmaceutical products can have severe implications on Indian drugmakers, as exports to the US form a significant share of their overall sales.
In April, Trump had said that the pharma sector will see tariffs at levels that weren't seen before. The US is looking at pharma as a separate category and the tariffs for the sector will be announced soon as they are currently under review, he had added.
Exposure Of Indian Pharma Stocks To US
The Indian pharmaceutical sector is one of the most vulnerable in case the tariffs are imposed, say analysts. Here's a company-wise list of revenue exposure to the US:
1. Gland Pharma: 50%
2. Aurobindo Pharma: 50%
3. Dr. Reddy's: 45%
4. Zydus Lifesciences: 45%
5. Lupin: 38%
6. Glenmark Pharma: 35%
7. Sun Pharma: 30%
8. Cipla: 28%
9. Torrent Pharma: 9%
US Consumer Impact
The US imports a significant portion of its drugs, and any tariff imposition would likely have a substantial impact on US consumers.
India exports approximately $9 billion worth of pharmaceuticals to the US, supplying around 40% of all generic drugs used in the country.
