ANKUR TYAGI
September 26, 2025 – Pharma stocks came under heavy selling pressure after the U.S. announced a 100% import tariff on branded and patented medicines, sparking concerns for Indian companies with large U.S. exposure. The move rattled investors, dragging the Nifty Pharma Index to its lowest level in weeks.
Pharma Index Performance
- Intraday: –2.17% (–477 points)
- 5-Day Fall: –4.82% (–1,089 points)
- 52-Week Low: –11% from peak levels
The U.S. pharmaceutical market, worth an estimated $450–500 billion, is the largest globally. Indian drugmakers, particularly those dependent on branded drugs and biosimilars, are expected to feel the heat.
Who’s at Risk?
- Sun Pharma: Largest Indian pharma exporter to the U.S. with $1.2 billion exposure. Stock slipped 3.08% intraday and is down 20% from its 52-week high.
- Zydus Life & Glenmark: Both have significant branded drug exposure and saw sharp declines.
- Biocon: Faces risk in its biosimilars segment, as biosimilars are classified under branded drugs.
- Generic drug makers: Largely insulated, as the tariffs apply only to branded and patented drugs.
Key Stock Moves (September 26, 2025)
| Stock | Intraday Change | From 52W High |
|---|---|---|
| Wockhardt | –5.61% | –25% |
| Sun Pharma | –3.08% | –20% |
| Laurus Labs | –6.54% | –11% |
| Gland Pharma | –2.21% | –9% |
| Zydus Life | –3.87% | –10% |
| Glenmark | –2.69% | –13% |
| Natco Pharma | –4.61% | –47% |
Market Impact
Analysts say the U.S. decision could significantly dent earnings of Indian pharma majors in the short to medium term, especially for those with heavy reliance on branded formulations. Investors are also worried about possible escalation of trade tensions that may expand to other drug categories.
The sell-off extended across the broader sector, eroding investor wealth as pharma stocks remained among the worst performers of the day.
Bottom Line
The U.S. tariff move is a double blow for Indian pharma: it threatens revenue streams from the world’s largest market while also dampening sector sentiment on Dalal Street. Until there is clarity on exemptions or negotiations, pharma counters may continue to face pressure.
Abhishek Sinha
