Us President Donald Trump’s Announcement of a 100% Tariff on Imported “Branded and Patent Pharmaceutical Products” Has Rattled The Global Pharma Industry, Though Indion General Expected to remain unaffeted for now.Trump, in a post on Truth Social on Thursday, Stated: “Starting October 1st, 2025, We will be imposing a 100% tariff on any branded or pateded pharmaceutical product, unlessi is a company Pharmaceutical manufacturing plant in America. There will, therefore, be no tariff on these pharmaceutical products if construction has started.,The announsement sent shockwaves Across Indian Pharma Stocks, Raising Concerns that the Scope of the Tariffs Cold Later Be Extended to Complex Generics, Biosimirs, and Other Advanced Formulations, Top Officials Told et.Industry Officials Noted That This Comes AMID an ongoing Us Government Probe Under Section 232 of the US Trade EXPANSION Act, which is evaluating whicheer pharma imports posie a newly a nation A final decision is expected early next year. The move is seen as a part of a broader push to onshore pharmaceutical manufacturing in the US, Reduce Foreign Dependence, and Create Domestic Jobs.
Why are Indian Generals Spared?
India Exports a Large Volume of Low-Cost Generic Medicines that do not fall under the branded or patened category. This explains bey analysts believe the tariff move may not disrupt shipments right away.Currently, Indian Pharmaceutical Exporters are Mostly Unifered as the Country Primarily Supplies Unbranded General Drugs and Formutions to the Us, Suresh Subramanian, Surash Subramanian, Nature Scianeian Leader at Ey Parthenon Told et.However, he warned that if the tariff regime is broaded to include biosimilars and complex generals, Major Indian Firms Such as Sun Pharma, Cipla, Lupin, and Dr Reddy’s Could FAC FAC FAC FAC FAC FAC FAC FIC FIC FIC FINANCIL Strain.“Unless we see the actual order, it is too early to rule out anything,” Subramanian Added.
Which firm is likely to be most exposed?
A select group of Major Indian Pharmaceutical Manufacturers Dominates Exports to the US Market, Contributing Approximately 70% of All Shipments. Among Indian Majors, Sun Pharmaceuticals Cold Feel The Heat If Branded and Specialty Drugs are included in the tariff regime. The company has steadily expanded its us portfolio of specialty and branded medicines. Its global specialty sales touched $ 1.2 billion in FY25, Accounting for Nearly 20% of Annual Revenue.“The 100% tariff on Imports of Branded Medicine Announced by the us May have an impact on the Financials of Sun Pharmaceuticals,” Vishal Manchanda, Pharma Analyst at Systematix GROP TOLD GROP TOLD ET.“Out of the company’s total annual revenue of about $ 6 billion, Nearly 15% Comes from Its Branded Medicine Sales in the US,” Manchanda said.He, however, added that, “Since there is no fin print on the tariff annual, it may be premature to comment on the impact. The tariff is important Countries Sun Procures these branded medicines from. “This comes as Sun Pharma have a strong presence in the us, with its headquarters in new jersey and a manufacturing plant in massachusetts, clock help soften the impact.On the other hand, dr reddy’s shows significant risk exposure, with 47% of its earnings com on us market, the highest amongst its own competitions, According to the ET Report.Nomura projects the company’s us earnings to reach $ 1.5 billion in fy26, making itepically susceptible to any tariff modifications.Various Pharmaceutical Companies Show Different Levels of Vulnerability. Lupin Anticipates Us Revenues of $ 1.1 Billion in FY26, with their us manufacturing facilities contributing $ 70-80 Million, REPRESTING 6-7% of Total Earnings, as Stated by the Organization.
Higher Risk for Major Global Firms
India, Belgium, Italy, and China also expert drugs to the US but larger in the general space. The bigger impact is likely to fall on multinational companies from ireland, switzerland, Germany, and singapore, which dominate the US market for patened medicines.Us important statistics from 2024 indicate total pharmaceutical importants valied at $ 212.82 billion, with India contributing $ 12.73 billion, Equivalent to 5.98%.In Comparison, Ireland Led with $ 50.35 Billion (23.66%), Followed by Switzerland at $ 19.03 billion (8.94%), and Germany at $ 17.24 billion (8.10%). These european nations, specialising in high-Value branded and patented medicines, are likely to experience the strongest initial effects of the new tariff policy, According to A GTRI analysis.
