25% Donald Trump tariff likely to weigh on pharma margins: Analysts

The impact on innovator contract research, development and manufacturing organisations (CRDMOs) would be relatively lower

If pharmaceutical exports from India to the US come under a 25 per cent tariff bracket, the impact on earnings before interest, tax, depreciation and amortisation (Ebitda) could be around 5 per cent, felt analysts. This is after assuming that about 75 per cent of the tariff would be passed on. 

Kotak Institutional Equities said that assuming a 25 per cent tariff on Indian pharma firms and baking in a nil pass-through, there could be a 0-27 per cent earnings per share (EPS) impact on generic drug exporters. 

The impact on innovator contract research, development and manufacturing organisations (CRDMOs) would