Trump tariff impact: Gland Pharma, Zydus, Aurobindo shares fall up to 4%; analyst views
Gland Pharma dropped 4.03 per cent to open at Rs 1,892.50. Zydus Life fell 3.54 per cent to open at Rs 990.55. Natco Pharma slipped 2.7 per cent, Aurobindo Pharma declined 2.45 per cent
- Sep 26, 2025,
- Updated Sep 26, 2025 9:22 AM IST
Gland Pharma, Zydus Lifesciences, Natco Pharma, Aurobindo Pharma and Sun Pharmaceuticals were among healthcare stocks leading the slide in the pharma pack on Friday after the US President Donald Trump announced 100 per cent tariffs starting October 1. While the tariff primarily targets branded drugs, Choice Broking said there is ambiguity over whether complex generics and specialty medicines might also be affected, which could pose challenges for companies relying on US exports.
Trump though clarified pharma firms with manufacturing plants under construction in the US will be exempt, offering an opportunity to mitigate tariff exposure," it said.
Gland Pharma dropped 4.03 per cent to open at Rs 1,892.50. Zydus Life fell 3.54 per cent to open at Rs 990.55. Natco Pharma slipped 2.7 per cent, Aurobindo Pharma declined 2.45 per cent while Sun Pharma dipped 2.3 per cent. Wockhardt, Dr Reddy's Labs and Divis Labs declined over 2 per cent each.
"President Trump’s tantrums with tariffs are resuming with new tariff imposts on patented and branded drugs. India being an exporter of generic drugs is unlikely to be impacted by this. But perhaps the president’s next target can be the generic drugs. This decision may have a sentimental impact on pharmaceutical stocks," said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited. Vijayakumar said Trump is now moving from country-specific tariffs to product-specific tariffs. Higher tariffs on trucks, upholstered furniture etc. indicates that the Trump administration’s weaponisation of tariffs may continue till US inflation spikes forcing a rethink of this policy.
Pharmaceuticals were earlier exempted under Section 232 investigations. Aurobindo Pharma exports account for 89 per cent of its sales. Out of these exports, exports to the US stood at 49 per cent. Similarly, US exports as percentage of Biocon's sales stands at 46 per cent. Cipla (29 per cent), Dr Reddy's Labs (46 p cent), Lupin (36 per cent), Sun Pharma (33 per cent), Zydus Lifesciences (48 per cent) and Piramal Pharma (39 per cent) are some of the pharma majors exporting significantly to the US, as per JM Financial note last month.
Nomura, in an April report, projected Sun Pharma’s US sales at $2.1 billion in FY26 and $2.3 billion in FY27. It pegged Dr. Reddy’s revenues at $1.5 billion in FY26, declining to $1.1 billion in FY27. Cipla’s US revenues were forecast at $900–950 million in both FY26 and FY27. For Lupin, estimates stood at $1.1 billion in FY26 and $960 million in FY27.
Nomura projected Sun Pharma’s US sales at $2.1 billion in FY26 and $2.3 billion in FY27, with specialty brands accounting for 55–57 per cent of revenues. Only about 10 per cent of specialty revenues are formulated in the US—largely Levulan—while the remaining 90 per cent are produced outside the country.
Dr Reddy’s US revenues are estimated at $1.5 billion in FY26 and $1.1 billion in FY27. Nomura expects products manufactured in the US to contribute less than 15 per cent of FY27 revenues, with gSuboxone among the few formulated domestically.
Cipla’s US sales are projected at $900–950 million in both FY26 and FY27. Its Invagen facilities in the US are likely to contribute 25–30 per cent of revenues. The company is also expanding its US manufacturing base following regulatory setbacks at Indian plants.
Lupin’s US revenues are pegged at $1.1 billion in FY26 and $960 million in FY27. Its US manufacturing sites generate around $70–80 million, translating to 6–7 per cent of total US revenues.
For Zydus, Nomura sees US revenues of $1.3 billion in FY26 and $1.2 billion in FY27, with minimal US production. Given its heavy reliance on the US, Nomura cautions that earnings could be significantly affected if the company absorbs potential tariff costs.
Aurobindo Pharma is currently the largest Indian generic player in the US, with $1.6 billion sales in CY2024. It operates three US manufacturing sites, though contributions remain limited. One site focuses on niche formulations such as dermatology, transdermal, and respiratory products, with potential to scale up. The company also plans to ramp up oral dosage production to 12–15 billion units, which could eventually cover a third of its US sales.
"The US move poses a direct risk to over $3.6 billion worth of annual Indian pharma exports to the US, raising concerns for companies with significant US exposure. This tariff action comes close on the heels of the steep hike in U.S. H-1B visa fees, which has already triggered heavy selling in IT sector stocks over the past few sessions," said Ponmudi R, CEO at Enrich Money.
Gland Pharma, Zydus Lifesciences, Natco Pharma, Aurobindo Pharma and Sun Pharmaceuticals were among healthcare stocks leading the slide in the pharma pack on Friday after the US President Donald Trump announced 100 per cent tariffs starting October 1. While the tariff primarily targets branded drugs, Choice Broking said there is ambiguity over whether complex generics and specialty medicines might also be affected, which could pose challenges for companies relying on US exports.
Trump though clarified pharma firms with manufacturing plants under construction in the US will be exempt, offering an opportunity to mitigate tariff exposure," it said.
Gland Pharma dropped 4.03 per cent to open at Rs 1,892.50. Zydus Life fell 3.54 per cent to open at Rs 990.55. Natco Pharma slipped 2.7 per cent, Aurobindo Pharma declined 2.45 per cent while Sun Pharma dipped 2.3 per cent. Wockhardt, Dr Reddy's Labs and Divis Labs declined over 2 per cent each.
"President Trump’s tantrums with tariffs are resuming with new tariff imposts on patented and branded drugs. India being an exporter of generic drugs is unlikely to be impacted by this. But perhaps the president’s next target can be the generic drugs. This decision may have a sentimental impact on pharmaceutical stocks," said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited. Vijayakumar said Trump is now moving from country-specific tariffs to product-specific tariffs. Higher tariffs on trucks, upholstered furniture etc. indicates that the Trump administration’s weaponisation of tariffs may continue till US inflation spikes forcing a rethink of this policy.
Pharmaceuticals were earlier exempted under Section 232 investigations. Aurobindo Pharma exports account for 89 per cent of its sales. Out of these exports, exports to the US stood at 49 per cent. Similarly, US exports as percentage of Biocon's sales stands at 46 per cent. Cipla (29 per cent), Dr Reddy's Labs (46 p cent), Lupin (36 per cent), Sun Pharma (33 per cent), Zydus Lifesciences (48 per cent) and Piramal Pharma (39 per cent) are some of the pharma majors exporting significantly to the US, as per JM Financial note last month.
Nomura, in an April report, projected Sun Pharma’s US sales at $2.1 billion in FY26 and $2.3 billion in FY27. It pegged Dr. Reddy’s revenues at $1.5 billion in FY26, declining to $1.1 billion in FY27. Cipla’s US revenues were forecast at $900–950 million in both FY26 and FY27. For Lupin, estimates stood at $1.1 billion in FY26 and $960 million in FY27.
Nomura projected Sun Pharma’s US sales at $2.1 billion in FY26 and $2.3 billion in FY27, with specialty brands accounting for 55–57 per cent of revenues. Only about 10 per cent of specialty revenues are formulated in the US—largely Levulan—while the remaining 90 per cent are produced outside the country.
Dr Reddy’s US revenues are estimated at $1.5 billion in FY26 and $1.1 billion in FY27. Nomura expects products manufactured in the US to contribute less than 15 per cent of FY27 revenues, with gSuboxone among the few formulated domestically.
Cipla’s US sales are projected at $900–950 million in both FY26 and FY27. Its Invagen facilities in the US are likely to contribute 25–30 per cent of revenues. The company is also expanding its US manufacturing base following regulatory setbacks at Indian plants.
Lupin’s US revenues are pegged at $1.1 billion in FY26 and $960 million in FY27. Its US manufacturing sites generate around $70–80 million, translating to 6–7 per cent of total US revenues.
For Zydus, Nomura sees US revenues of $1.3 billion in FY26 and $1.2 billion in FY27, with minimal US production. Given its heavy reliance on the US, Nomura cautions that earnings could be significantly affected if the company absorbs potential tariff costs.
Aurobindo Pharma is currently the largest Indian generic player in the US, with $1.6 billion sales in CY2024. It operates three US manufacturing sites, though contributions remain limited. One site focuses on niche formulations such as dermatology, transdermal, and respiratory products, with potential to scale up. The company also plans to ramp up oral dosage production to 12–15 billion units, which could eventually cover a third of its US sales.
"The US move poses a direct risk to over $3.6 billion worth of annual Indian pharma exports to the US, raising concerns for companies with significant US exposure. This tariff action comes close on the heels of the steep hike in U.S. H-1B visa fees, which has already triggered heavy selling in IT sector stocks over the past few sessions," said Ponmudi R, CEO at Enrich Money.