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Indian pharma stocks were in focus on Thursday (April 3, 2025) early trading hours after the generic drugmakers got an exemption from U.S. tariff levy.
Also read: Front-end manufacturing in U.S. way forward to counter tariff impact on pharma: Natco Pharma CEO
Aurobindo Pharma, Dr. Reddy’s Laboratories, Sun Pharma, Lupin, Cipla, Natco Pharma, Gland Pharma were among the shares on the upswing. All the 20 entities part of the Nifty Pharma were in green even as the sectoral index of National Stock Exchange showed a 2.92% increase around 10.30 a.m. It was higher soon after market opening.
Organisations representing pharma firms and exporters hailed the development around U.S. tariff for their industry. Pharmaceuticals Export Promotion Council of India welcomed the tariff exemption. The move reaffirms commitment to uninterrupted supply of quality and affordable medicines, the body under the Commerce Ministry said.
“Pharmexcil welcomes U.S. tariff exemption… express our gratitude to the government of India for successfully negotiating exemption of Indian pharmaceuticals from U.S. reciprocal tariffs. This vital decision secures uninterrupted flow of essential and affordable medicines to Americans reinforcing India’s unwavering commitment to quality and reliable supply. Indian pharmaceutical industry is dedicated to strengthening the India-U.S. healthcare partnership, ensuring continued access to life-saving treatments…” chairman Namit Joshi said.
Separately, Pharmexcil director general Raja Bhanu said “We thank the Ministry of Commerce for having extensive and elaborate discussions with U.S. counterparts to ensure pharmaceuticals are exempted. The industry will ensure the seamless supply of quality and affordable medicines which is its U.S.P. …continue to do so for the healthcare needs of U.S.A.”
Win-win scenario
It is win-win scenario because of the seamless supply of quality and affordable medicines to Americans reducing the healthcare costs to a great extent, he said.
Indian Pharmaceutical Alliance (IPA) secretary general Sudarshan Jain said pharmaceuticals getting exempted from the tariff underscores the critical role of cost-effective, life-saving generic medicines in public health, economic stability and national security. He said pharmaceuticals remain a cornerstone in the overall India-U.S. bilateral trade that the two countries have agreed to double to $500 billion.
The development is bound to come as a big relief for the industry, at least for time being. Commenting on the tariffs announced by the U.S. and bound to impact various industries, head of global equities at Marcellus Investment Managers Arindam Mandal said, “The announced tariffs are more severe than anticipated. There are some temporary exemptions though — such as for pharmaceuticals, semiconductors, and energy — but their impact may be limited.”
In the run up to the tariff announcement and as a measure to soften the blow, Indian pharma began evaluating even some manufacturing in the U.S. Getting a front-end manufacturing in the U.S. was the only way forward in the event of U.S. levying tariff on pharmaceuticals, Natco Pharma’s vice-chairman and CEO Rajeev Nannapaneni had said. Setting the backdrop for his observation, during an investor call, was the U.S. president Donald Trump threatening to levy 25% reciprocal tariff on Indian pharma. India levies 10% tariff on U.S. pharma imports.
EOM
Published – April 03, 2025 12:04 pm IST
