{"id":15907,"date":"2025-09-27T15:25:56","date_gmt":"2025-09-27T15:25:56","guid":{"rendered":"http:\/\/tezgyan.com\/index.php\/2025\/09\/27\/sun-pharma-cipla-dr-reddys-which-pharma-giant-faces-maximum-risk-from-trumps-100-tariff-markets-news\/"},"modified":"2025-09-27T15:25:56","modified_gmt":"2025-09-27T15:25:56","slug":"sun-pharma-cipla-dr-reddys-which-pharma-giant-faces-maximum-risk-from-trumps-100-tariff-markets-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/09\/27\/sun-pharma-cipla-dr-reddys-which-pharma-giant-faces-maximum-risk-from-trumps-100-tariff-markets-news\/","title":{"rendered":"Sun Pharma, Cipla, Dr Reddy\u2019s: Which Pharma Giant Faces Maximum Risk From Trump\u2019s 100% Tariff? | Markets News"},"content":{"rendered":"


\n<\/p>\n

\n

Last Updated:<\/span>

Trump’s imposition of 100% tariffs on branded drugs has shaken Indian pharma firms, impacting stocks like Sun Pharma, Cipla, and Dr. Reddy’s<\/h2>\n
<\/p>\n
\n
\n
\n
\"font\"<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\"Pharma<\/p>\n

Pharma Tariffs<\/p>\n<\/figure>\n

After targeting Indian IT majors with the H-1B visa fee hike, US President Donald Trump has now turned his attention to the pharmaceutical sector, imposing a 100% tariff on branded and patented drugs starting October 1, 2025.<\/p>\n

Pharmaceutical shares came under heavy selling pressure on Friday following the announcement, raising concerns over broader trade disruptions. The Nifty Pharma index dropped 2.40% in morning trade, with all 20 of its constituents in the red.<\/p>\n

While most Indian pharma companies derive the bulk of their revenues from generics, the tariff rattled investor sentiment, pushing Sun Pharma, Cipla, and Dr. Reddy\u2019s shares down by up to 5%.<\/p>\n

With 30\u201347% of their revenues linked to the US market, analysts are evaluating which companies\u2019 balance sheets could be hit hardest if Trump\u2019s measures extend to complex generics and specialty medicines. The US is India\u2019s largest pharma market, accounting for roughly 35% of exports, valued at about $10 billion in FY25.<\/p>\n

\u201cPresident Trump\u2019s tariffs on patented and branded drugs are resuming,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited. \u201cIndia, being an exporter of generic drugs, is unlikely to be impacted, though generics could become a future target.”<\/p>\n

\u201cWhile the tariffs primarily target branded drugs, ambiguity remains over whether complex generics and specialty medicines might also be affected,” warned Maitri Sheth from Choice Institutional Equities. \u201cCompanies with US manufacturing plants under construction are exempt, offering some mitigation.”<\/p>\n

Sunny Agarwal of SBI Securities added, \u201cSun Pharma seems most impacted, followed by Dr. Reddy\u2019s. Most players are in generics, so the effect on branded generics remains unclear.”<\/p>\n

Dr. Reddy\u2019s: The Most Exposed<\/h3>\n

Dr. Reddy\u2019s is among the most vulnerable, with 47% of revenues dependent on the US market\u2014the highest among peers. Nomura estimates DRL\u2019s US revenues at $1.5 billion in FY26, making tariff expansion potentially severe.<\/p>\n

\u201cProducts manufactured in the US contribute less than 15% to FY27F revenues,” Nomura noted, leaving the bulk of DRL\u2019s American operations exposed. Some products, like gSuboxone, are US-formulated, offering limited protection.<\/p>\n

Sun Pharma: Specialty Brands Under Fire<\/h3>\n

Sun Pharma\u2019s 37% US exposure puts $2.1\u20132.3 billion of FY26 revenues at risk. Specialty brands account for 55\u201357% of US revenues, with only 10% produced domestically. Its top-selling product, Ilumya, is manufactured outside the US, likely in Ireland, making it vulnerable to tariffs. Nomura analysts note, however, that as Ilumya is a chronic therapy, Sun may pass on the tariff impact and retain volumes. Sun Pharma shares fell up to 5% to a 52-week low of Rs 1,547.25 on the BSE.<\/p>\n

Cipla: The Relative Safe Haven<\/h3>\n

Cipla appears least exposed, with 30% of revenues linked to the US ($900\u2013950 million in FY26\/27). Its US-based Invagen sites contribute 25\u201330% of US revenues, providing some protection. \u201cThe company is expanding US manufacturing post-regulatory issues at Indian sites,” analysts noted, creating a buffer against future tariff risks.<\/p>\n

Broader Impact on Indian Pharma<\/h3>\n