The Nifty Pharma index fell as much as 2.5% in response.
Granules India is the top loser on the Nifty Pharma index, declining up to 4%, while those of Lupin, Aurobnido and Natco Pharma also fell 3% each.
Earlier in April, after announcing the reciprocal tariffs across 60 countries, which excluded the Pharma sector, Trump had mentioned that tariffs on the Pharma sector will be at “never seen before” levels.
“Pharma tariffs are going to come in at levels you haven’t really seen before. We are looking at pharmaceuticals as a separate category. We will be announcing that sometime in the near future, and not too distant future. It’s under review right now,” Trump had said back in April.
Currently, Pharma, as a sector, is being investigated by the US Commerce Department, under Section 232, which is used to determine the effects the imports of a goods or service could have on national security. Section 232 is exempt from the baseline and reciprocal tariffs.
In case there is no pass through, companies with the highest exposure to the US generics market will likely take a one-time hit to their Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) in the range of 9% to 12%, according to Citi. You can read more on that here.
The Nifty Pharma index is currently trading 2.2% lower, while extending its year-to-date losses to 8%.
First Published:Â Jun 17, 2025 2:56 PM IST
