Pharma shares slide up to 10% as Trump to announce pharma tariffs 'soon'

Trump tariffs: Blue Jet Healthcare, Aarti Pharmalabs, Marksans Pharma, Ipca, Wockhardt, Ami Organics, Biocon, Piramal Pharma, Lupin, Laurus Labs and Gland Pharma dropped in the range of 3% to 10%

Shares of pharmaceutical companies fell up to 10 per cent on the Bombay Stock Exchange (BSE) in Wednesday's intraday trade after US President Donald Trump said that the US will 'soon' announce major tariffs on pharmaceutical imports.

 

This came after the Trump administration had exempted pharmaceutical products from the initial list of reciprocal tariffs. While Trump did not specify which countries are likely to be impacted by this new move, India and China, the two major suppliers of generic drugs to the US, are likely to take a hit.

 

The US remained the largest destination for India's pharmaceutical exports, accounting for a 36.6 per cent share or $9.8 billion, during April–February 2024–25.

 

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Shares of Blue Jet Healthcare, Aarti Pharmalabs, Marksans Pharma, Ipca Laboratories, Caplin Point Laboratories, Wockhardt, Ami Organics, Biocon, Supriya Lifesciences, Piramal Pharma, Lupin, Laurus Labs, and Gland Pharma tumbled 3 per cent to 10 per cent on the BSE in the intraday trade.

 

At 11:57 AM, BSE Healthcare index was down 1 per cent as compared to 0.5 per cent decline in the BSE Sensex. In the past five trading days, the healthcare index has slipped 6 per cent as against a 3-per cent decline in the benchmark index. Further, thus far in calendar year 2025, BSE Healthcare index has tanked 13 per cent as compared to 6 per cent decline in the Sensex.  ALSO READ | 5 pharma stocks that you should stay away from given their tech charts

 

Among individual stocks, Blue Jet Healthcare was locked in the lower circuit of 10 per cent at ₹627.30 on the BSE. It has corrected 35 per cent from its 52-week high level of ₹968.75, which it touched on March 21, 2025. Blue Jet Healthcare is a specialty pharmaceutical and healthcare ingredient and intermediate company, operating under a contract development and manufacturing organization (CDMO) business model.

 

Shares of Wockhardt, too, plunged 8 per cent to ₹1,163.60 in the intraday trade, falling 19 per cent in the past one week. Shares of Ipca Laboratories, meanwhile, slipped 7 per cent to ₹1,274.45 in the intraday trade. The stock is down 27 per cent from its 52-week high level of ₹1,757.65, which it hit on January 3, 2025.

  According to data shared by Pharmexcil, a pharmaceutial export promotion agency, the US market grew 14 per cent despite a large base in April–February periof of FY25 – and remained the largest destination for India's pharmaceutical (pharma) exports, accounting for a 36.6 per cent share (or $9.8 billion). Moreover, exports for the full year are expected to be around $27 billion.   

The US, Europe, and Africa are the largest export regions for India, together accounting for almost 70 per cent of the country’s total pharma exports. Exports to the EU grew by a modest 2.72 per cent, while exports to Africa fell by 1.74 per cent, ICICI Securities said in a note.

 

"As we wait for actual tariff announcements on pharmaceuticals, we expect some concessional bilateral negotiations to take place as pharma being a sensitive sector having public health at stake. We expect volatility to persist until the actual announcement and further negotiations," the brokerage firm said.