Pfizer soars 8%; Sun, Lupin gain up to 4%; here's what triggered the rally

Pfizer-US trade deal triggers rally in pharma stocks. Nifty Pharma and BSE Healthcare index jumped 1 per cent each; while Nifty 50 and BSE Sensex advanced 0.1 per cent each in Wednesday's early trade.

Pharmaceutical shares price movement today

 

Shares of pharmaceutical companies were in focus, and rallied up to 8 per cent on the National Stock Exchange (NSE) in Wednesday’s intra-day trade after Pfizer (US) said it entered into an agreement with the US administration to lower select drug prices in return for tariff relief.

 

Following reports, shares of Pfizer rallied 8 per cent to ₹5,442 on the NSE in intra-day trade. Lupin, Eris Lifesciences, Sun Pharmaceutical Industries, Laurus Labs, Piramal Pharma, Biocon, Granules India and Suven Lifesciences were up in the range of 2 per cent to 4 per cent.

 

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At 09:26 AM; Nifty Pharma and BSE Healthcare index, the top gainers among sectoral indices, were up 1 per cent each. In comparison, the Nifty 50 and BSE Sensex were up 0.12 per cent each.

 

However, in the past one week, the BSE Healthcare index has dropped 2.6 per cent, as against a 1.8 per cent decline in the benchmark index.  FOLLOW LATEST STOCK MARKET UPDATES LIVE

Here's why pharma shares are in focus today

 

Pfizer (US), the parent company of Pfizer, has entered into an agreement with the United States (US) administration to lower select drug prices in return for tariff relief. Under the deal, Pfizer will offer certain medicines at an average 50 per cent discount through the government’s new direct-to-consumer platform, TrumpRx, which is set to launch in 2026. The agreement grants Pfizer a three-year grace period from potential pharmaceutical tariffs under the administration’s Section 232 probe, while helping it avoid tariff measures.

 

According to ICICI Securities, this move is likely to pave the way for other branded players to negotiate the pricing and to get respite from higher tariffs. In Sun Pharma case, we will wait for the management commentary on this development. The brokerage firm also anticipates this development as an opportunity for the Contract Development and Manufacturing Organization (CDMO) players especially for those having a US manufacturing base. The brokerage further said it continues to monitor the developments for better clarity.

 

Meanwhile, the US has imposed a 100 per cent tariff on imported branded and patented pharmaceutical products effective October 2025, with exemptions only for companies manufacturing locally. Unbranded generics - which dominate India’s export basket - remain outside the immediate scope, but ambiguity persists around complex generics, Biosimilars, and CDMO products. This development forces branded generic exporters to consider either establishing US manufacturing capacity or rerouting sales to alternative geographies.

 

Analysts at Choice Institutional Equities believe pure-play generic companies such as Ajanta Pharma, Alkem Laboratories, and Marksans are largely insulated due to their product mix, while firms with both generic and branded portfolios - Sun Pharma, Dr Reddy’s and Cipla - face moderate revenue and margin risk, mitigated by existing US manufacturing operations.  

 

SENORES, generating all US revenue through its local plant, remains fully exempt and structurally advantaged. Overall, the immediate impact is limited, but companies with significant branded exposure may need to consider US capacity expansion or alternative market diversification (including through inorganic expansions), the brokerage firm said.