India's Healthcare Index Sinks After Trump's Pharma Tariff Blow - SEBI Analyst Sees Risks For Gland, Biocon, Dr. Reddy's

Healthcare stocks in India fell on Friday as investors weighed the impact of U.S. President Donald Trump's move to impose a 100% tariff on branded and patented drugs starting Oct. 1. 

The measure, announced in late-night Truth Social posts, exempts only those manufacturers with U.S. plants that are already under construction or have broken ground.

The Nifty Healthcare index fell 1.2% on Thursday, with 18 of its 20 components trading lower. IPCA Laboratories remained unchanged, while Torrent Pharma rose 0.01%.

Analyst View

SEBI-registered analyst Vishal Trehan said Gland Pharma is the most exposed, given its lack of a U.S. manufacturing footprint and reliance on branded or patented formulations. 

He noted that Syngene International, Piramal Pharma, and Zydus Lifesciences stand to benefit from their contract manufacturing models and biologics portfolios, which are less tariff-sensitive.

Trehan also pointed out that companies with a large branded generics or biosimilars presence, such as Dr. Reddy's Laboratories and Biocon, will need to accelerate U.S. production to avoid margin erosion.

Trump's Pharma Tariffs

The announcement builds on Trump's escalating trade measures aimed at repatriating drug manufacturing. Last month, he outlined a phased plan, beginning with a“small tariff” on imported drugs, before lifting duties to 150% within 18 months and ultimately to 250%. 

Pharmaceuticals had earlier been excluded from his reciprocal tariff program, but the new rules extend to prescription medicines, biologics, specialty drugs, and over-the-counter products, with generic drugs remaining exempt.

What Is The Retail Mood?

On Stocktwits, retail sentiment for Piramal Pharma, Zydus Lifesciences, and Dr. Reddy's Laboratories was 'bearish' amid 'normal' message volume.

So far this year, Gland Pharma has risen 6.5%, while Syngene International is down 29.1%, Piramal Pharma has slipped 25.9%, Zydus Lifesciences is up 1.8%, Dr. Reddy's Laboratories is down 7.2%, and Biocon has fallen 6.3%.

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