Pharma Inc mulls offshore strategy as US tariff fears hit sentiment

Despite current exemptions, Indian pharma firms are preparing for potential US tariffs through offshore units, EU market focus, and sourcing diversification

Indian pharmaceutical companies are brainstorming to weather the US tariff storm, even though medicines remain exempt from the US levy for now.

 

Several companies that Business Standard spoke to said they were engaged in scenario planning, evaluating mid- and long-term strategies such as setting up offshore manufacturing, securing raw material from multiple sourcing, and exploring contract manufacturing options within the US.

 

The Nifty Pharma index fell in early trade but recovered during the day to close in the green. However, Aurobindo Pharma’s stock ended lower, while most pharma stocks clawed back losses seen in the morning session.

 

On Wednesday, US