Sun Pharma, Aurobindo, Lupin, Zydus Life shares: Analyst views on Trump's generic tariff roadmap
US exports accounted for 46.16 per cent of Aurobindo Pharma's sales in FY26. For Sun Pharma, 30.26 per cent of its revenues came from US in FY26, as per Bloomberg data.
- Jul 22, 2026,
- Updated Jul 22, 2026 1:43 PM IST
Shares of pharma exporters such as Aurobindo Pharma Ltd, Dr Reddys Laboratories Ltd, Lupin, Sun Pharmaceuticals Industries Ltd and Zydus Lifesciences are in focus on Wednesday morning after the US President Donald Trump in a social media post said all generic drugs being brought into the United States will continue to have a tariff of zero per cent for a two-year period effective August 1, 2026. After the period ends, said Trump, such exports would attract a 100 per cent tariff for a one year period and 200 per cent thereafter.
"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. The objective of this policy is to protect the people of the United States," Trump said in a post on Truth Social.
Trump added that the policy on patented, branded, or innovative drugs, which has been so successful, will remain as is.
"Pharmaceutical facilities are being built, at a level never seen before, all over the United States of America," the US President said.
Bloomberg data compiled by Business Today showed US exports accounted for 46.16 per cent of Aurobindo Pharma's sales in FY26. Aurobindo Pharma is among the largest Indian generic player in the US. It operates three US manufacturing sites. One of its sites focuses on niche formulations such as dermatology, transdermal, and respiratory products, with potential to scale up.
"At this stage, we view the proposal primarily as a negotiating tool, given that implementation is deferred until August 2028, beyond the next US election cycle. Accordingly, we do not expect any near-term earnings impact, although the announcement could weigh on investor sentiment and valuation multiples," said Bharat Celly, Equity Research Analyst at Equirus Securities.
Tariffs are proposed to rise to 100 per cent from August 2028 and 200 per cent from August 2029, with the stated objective of encouraging companies to establish manufacturing facilities in the US.
"However, relocating manufacturing is not a two-year exercise. Transferring an approved product to a US facility requires site transfer filings, process validation, stability data, and FDA approval for each ANDA. For Indian generic manufacturers with large approved portfolios, the cost and timeline of re-registering products significantly exceed the proposed transition period, while the economics of many products do not support such a move," Celly said.
He said the proposal also runs counter to the intent of the Hatch-Waxman framework, which was designed to reduce drug prices through greater generic competition. "Imposing 100–200 per cent tariffs on imported generics could instead raise the cost of low-priced medicines and, in shortage-prone categories, increase the risk of supply disruptions rather than drive reshoring," Celly said.
For Sun Pharma, 30.26 per cent of its revenues came from US in FY26, as per Bloomberg data. Sun Pharma is the world's fourth largest specialty generic pharma company. In the US, it offers a portfolio of various dosage forms, including liquids, creams, oinments, gels, sprays, injectables and drug-device combinations. It is a valued supplier to the largest wholesalrs, distributors and chain drugstores in the US.
Lupin derived 41.04 per cent of its revenues from North America. US business accounted for 43.85 per cent revenues for Zydus Life.
Trump earlier signed an executive order in April imposing 100 per cent tariffs on branded pharmaceuticals imported into the US. This, he said, was made until manufacturers agree to government drug pricing deals or commit to making their products domestically.
More than 90 per cent of medicines sold in the US are generics, according to the US Food and Drug Administration.
Mayank Jain, Market Analyst at PhonePe's Share.Market said the two-year grace period before the US generic tariffs take effect offers Indian drugmakers a vital operational runway. This window gives companies sufficient time to realign global supply chains, renegotiate distribution contracts, or establish local manufacturing capabilities directly within the US, he said.
"Additionally, export diversification is gaining momentum through the newly effective India-UK Free Trade Agreement, which removes import duties on Indian pharmaceuticals entering the UK market and is expected to drive a 8 per cent to 10 per cent boost in UK-bound exports next year," he added.
India and the US has so far failed reach a consensus on a trade agreement in recent talks, with New Delhi holding out for a better deal. After months of talks, the two nations failed to finalise an interim trade agreement during US Trade Representative Jamieson Greer's visit to New Delhi, despite expectations from both sides that a limited deal was within reach, Reuters reported earlier.
Shares of pharma exporters such as Aurobindo Pharma Ltd, Dr Reddys Laboratories Ltd, Lupin, Sun Pharmaceuticals Industries Ltd and Zydus Lifesciences are in focus on Wednesday morning after the US President Donald Trump in a social media post said all generic drugs being brought into the United States will continue to have a tariff of zero per cent for a two-year period effective August 1, 2026. After the period ends, said Trump, such exports would attract a 100 per cent tariff for a one year period and 200 per cent thereafter.
"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. The objective of this policy is to protect the people of the United States," Trump said in a post on Truth Social.
Trump added that the policy on patented, branded, or innovative drugs, which has been so successful, will remain as is.
"Pharmaceutical facilities are being built, at a level never seen before, all over the United States of America," the US President said.
Bloomberg data compiled by Business Today showed US exports accounted for 46.16 per cent of Aurobindo Pharma's sales in FY26. Aurobindo Pharma is among the largest Indian generic player in the US. It operates three US manufacturing sites. One of its sites focuses on niche formulations such as dermatology, transdermal, and respiratory products, with potential to scale up.
"At this stage, we view the proposal primarily as a negotiating tool, given that implementation is deferred until August 2028, beyond the next US election cycle. Accordingly, we do not expect any near-term earnings impact, although the announcement could weigh on investor sentiment and valuation multiples," said Bharat Celly, Equity Research Analyst at Equirus Securities.
Tariffs are proposed to rise to 100 per cent from August 2028 and 200 per cent from August 2029, with the stated objective of encouraging companies to establish manufacturing facilities in the US.
"However, relocating manufacturing is not a two-year exercise. Transferring an approved product to a US facility requires site transfer filings, process validation, stability data, and FDA approval for each ANDA. For Indian generic manufacturers with large approved portfolios, the cost and timeline of re-registering products significantly exceed the proposed transition period, while the economics of many products do not support such a move," Celly said.
He said the proposal also runs counter to the intent of the Hatch-Waxman framework, which was designed to reduce drug prices through greater generic competition. "Imposing 100–200 per cent tariffs on imported generics could instead raise the cost of low-priced medicines and, in shortage-prone categories, increase the risk of supply disruptions rather than drive reshoring," Celly said.
For Sun Pharma, 30.26 per cent of its revenues came from US in FY26, as per Bloomberg data. Sun Pharma is the world's fourth largest specialty generic pharma company. In the US, it offers a portfolio of various dosage forms, including liquids, creams, oinments, gels, sprays, injectables and drug-device combinations. It is a valued supplier to the largest wholesalrs, distributors and chain drugstores in the US.
Lupin derived 41.04 per cent of its revenues from North America. US business accounted for 43.85 per cent revenues for Zydus Life.
Trump earlier signed an executive order in April imposing 100 per cent tariffs on branded pharmaceuticals imported into the US. This, he said, was made until manufacturers agree to government drug pricing deals or commit to making their products domestically.
More than 90 per cent of medicines sold in the US are generics, according to the US Food and Drug Administration.
Mayank Jain, Market Analyst at PhonePe's Share.Market said the two-year grace period before the US generic tariffs take effect offers Indian drugmakers a vital operational runway. This window gives companies sufficient time to realign global supply chains, renegotiate distribution contracts, or establish local manufacturing capabilities directly within the US, he said.
"Additionally, export diversification is gaining momentum through the newly effective India-UK Free Trade Agreement, which removes import duties on Indian pharmaceuticals entering the UK market and is expected to drive a 8 per cent to 10 per cent boost in UK-bound exports next year," he added.
India and the US has so far failed reach a consensus on a trade agreement in recent talks, with New Delhi holding out for a better deal. After months of talks, the two nations failed to finalise an interim trade agreement during US Trade Representative Jamieson Greer's visit to New Delhi, despite expectations from both sides that a limited deal was within reach, Reuters reported earlier.