Pharma stocks in India declined in early trade on Wednesday after US President Donald Trump announced a phased tariff plan for imported generic medicines. The Nifty Pharma index fell nearly 2% with all its constituents trading in the red.
Lupin, Gland Pharma, Aurobindo Pharma, Ajanta Pharma, Sai Life Sciences and Zydus Lifesciences shares were among the top losers on the Nifty Pharma index, falling more than 2% each.
Piramal Pharma, Alkem Labs, Cipla and Glenmark Pharmaceuticals shares were also among the top losers.
Trump announced a phased tariff plan on imported generic drugs to encourage domestic pharmaceutical manufacturing. Under the proposal, generic drugs imported into the US will continue to face a 0% tariff for two years starting August 1. Beginning in August 2028, a 100% tariff will be imposed for one year, followed by a 200% tariff thereafter.
In a post on Truth Social, Trump said that the policy was designed to encourage generic drug manufacturers to establish production facilities within the US, describing the higher tariffs as a penalty for companies that fail to relocate manufacturing during the transition period.
The policy specifically targets generic pharmaceuticals, while tariffs on patented and branded drugs will remain unchanged under the current framework.
