Pharma Stocks Drop Up To 10% As Trump Plans To Unveil New Tariffs – News18
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Pharmaceutical stocks tumbled sharply on Wednesday, falling as much as 10% in intraday trade on the Bombay Stock Exchange as tariffs loom
Pharma Shares Decline
Pharmaceutical stocks tumbled sharply on Wednesday, falling as much as 10% in intraday trade on the Bombay Stock Exchange (BSE), after US President Donald Trump announced that the United States would “soon” impose major tariffs on pharmaceutical imports. This marks a shift from earlier policy, where drug products were excluded from initial rounds of reciprocal tariffs.
Although Trump did not specify which countries will be impacted, India and China—two of the largest suppliers of generic medicines to the US—are expected to be the most affected. The US is India’s biggest pharmaceutical export market, accounting for 36.6% of total shipments, or $9.8 billion, between April and February of FY25. For the full fiscal year, India’s pharma exports are projected to reach $27 billion.
Investor sentiment took a hit, with shares of several key pharmaceutical companies—including Blue Jet Healthcare, Aarti Pharmalabs, Marksans Pharma, Ipca Laboratories, Caplin Point Laboratories, Wockhardt, Ami Organics, Biocon, Supriya Lifesciences, Piramal Pharma, Lupin, Laurus Labs, and Gland Pharma—plunging between 3% and 10%.
At 11:57 AM, the BSE Healthcare index was down 1%, underperforming the BSE Sensex, which slipped 0.5%. Over the past five sessions, the healthcare index has dropped 6% versus a 3% decline in the benchmark index. So far in calendar year 2025, the sector has lost 13%, compared to a 6% fall in the Sensex.
Among notable losers, Blue Jet Healthcare hit the 10% lower circuit at Rs 627.30. The stock has declined 35% from its 52-week high of Rs 968.75 recorded on March 21, 2025. The company operates as a contract development and manufacturing organization (CDMO), specializing in pharma ingredients and intermediates. Wockhardt shares dropped 8% to Rs 1,163.60, extending their weekly loss to 19%. Ipca Laboratories fell 7% to Rs 1,274.45 and is now 27% below its January peak of Rs 1,757.65.
According to data from Pharmexcil, a pharma export promotion body, the U.S. market grew by 14% during April–February FY25 despite its already large base. Meanwhile, exports to the European Union rose by a modest 2.72%, and exports to Africa declined by 1.74%, according to a note from ICICI Securities.
“As we await concrete details on the proposed tariffs, we anticipate possible bilateral negotiations given the sensitive nature of pharmaceuticals and public health concerns,” ICICI Securities said. “Market volatility is expected to continue until a formal announcement and further clarity emerge.”
