Shares of Sun Pharma will be in focus on Monday, April 6, following the announcement that pharmaceutical companies face 100% tariffs unless they lower prices or manufacture drugs within the US. Domestic equity markets remains closed on Friday, April 3, for Good Friday.
President Donald Trump enacted an executive order on Thursday, April 2, which places 100% tariffs on branded pharmaceuticals imported into the US unless manufacturers agree to government pricing agreements or commit to producing their products domestically.
Last year, the largest pharmaceutical companies reached agreements with the US government that exempted billions of dollars’ worth of drugs from tariffs. Generic drugs are also exempt, but smaller and mid-sized firms are at risk of penalties unless they negotiate their own agreements or relocate their production.
Sun Pharma most exposed Indian company to tariffs
Global brokerage Jefferies, in its latest report, emphasized that in this scenario, their fundamental assumption is that tariffs on generic companies, including those based in India, will continue to be exempted. Jefferies considers Sun Pharma to be the Indian company most susceptible to tariffs.
Approximately 20% of Sun Pharma’s total revenue comes from innovative medicines. According to the global brokerage’s analysis, Sun Pharma’s key innovative products are produced in South Korea, the EU, or within the US. South Korea and the EU have agreed on pharmaceutical tariffs of 15% with the USA.
Therefore, Jefferies believes that the maximum tariffs on Sun Pharma’s innovative products would be limited to 15%.
Jefferies reports that approximately 20% of Sun Pharma’s total revenue comes from innovative products. Their assessment indicates that the primary innovative offerings of Sun Pharma are produced in South Korea, the EU, or the United States. South Korea and the EU have established pharmaceutical tariffs at 15% with the United States. Consequently, the global brokerage concluded that the highest tariffs on Sun Pharma’s innovative products are likely to be limited to 15%.
Sun Pharma share price
On Thursday, Sun Pharma share price ended nearly 2% lower at ₹1,694.65 apiece on the BSE.
According to Anshul Jain, Head of Research at Lakshmishree, Sun Pharma opened with a sharp gap down near 1,640, retracing into the bullish gap formed in February 2026 around the 1,650 zone. However, intraday price action saw strong buying interest, resulting in a hammer formation and a close near the day’s high—signalling demand absorption at key support.
“This indicates that the gap-down was met with aggressive accumulation rather than continuation selling. Price structure now favours a short-term reversal, with a high probability of follow-through toward the 1,730–1,750 zone. Sustained strength above this band could extend the upmove further. Immediate support lies at 1,640, which also serves as the near-term invalidation level,” said Jain.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
