Sun, Lupin, Dr Reddy's drop up to 4%; why are pharma stocks falling today?

Pharma shares crash: In the past four weeks, the Nifty Pharma index has slipped 5 per cent, as against 0.19 per cent decline in the Nifty 50.

Shares price movement of pharmaceutical companies today

 

Shares of pharmaceutical companies were under pressure, falling up to 3 per cent on the National Stock Exchange (NSE) in Tuesday’s intra-day trade.

 

Zydus Lifesciences, Sun Pharmaceutical Industries, Laurus Labs, Lupin, Dr Reddy’s Laboratories and Divi’s Laboratories were down in the range of 2 per cent to 4 per cent on the NSE. Torrent Pharmaceuticals, Ipca Laboratories, Natco Pharma, Mankind Pharma and Ajanta Pharma from the Nifty Pharma index were down 1 per cent each.

 

The decline in the stock prices of pharmaceutical companies was attributed to reports that the US President Donald Trump on August 25 said he would slash drug prices between 1,400 per cent and 1,500 per cent, reaffirming his administration’s aggressive stance on pharmaceutical pricing and plans to impose higher tariffs on imported medicines.

 

 

At 09:46 AM; Nifty Pharma, the top loser among sectoral indices, was down 1.8 per cent, as compared to 0.81 per cent decline in the Nifty 50. In the past four weeks, the pharma index has slipped 5 per cent, as against 0.19 per cent decline in the benchmark index.  FOLLOW STOCK MARKET LIVE UPDATES TODAY

Why are pharma shares falling today?

As per recent notification by the White House, the US President, Donald Trump has notified the additional tariff of 25 per cent on India and it will be in effect from 12:00am August 27, 2025. This notification confirms 50 per cent tariffs on India.

 

Meanwhile, on July 31, the President of the US sent letters to several global pharmaceutical companies asking them to provide medicines at Most Favoured Nation prices in the US. 

 

Sun Pharma said the company is not among the recipients of the letter cited above. There is no company-specific development, it added.

 

Indian pharmaceutical companies have a strong presence in the US, which remains one of their most significant sources of revenue. The US has a significant reliance on other countries, including India, for raw materials and finished pharmaceutical products. In the US, a lot of medicines are made available and affordable because of generics. Generics are almost 90 per cent of the volume in the US and that helps bring the healthcare cost down.

 

Slower growth in key export markets such as the US due to price erosion and increasing regulatory challenges that can affect market dynamics, according to analysts.

 

Meanwhile, events such as the Russia-Ukraine conflict, US-China trade tensions, and Middle East volatility, pose a threat to global pharma logistics and operations. Further, the potential enforcement of tariffs and protectionist measures could disrupt China and India-based sourcing and shift regulatory expectations, Lupin said in its FY25 annual report.

 

However, the Indian pharmaceutical sector is expected to double in size by 2030, fueled by exports, complex generics, and specialty therapies. The industry is transitioning from volume-driven generics to value-added platforms, including injectables, biosimilars, and novel drug delivery systems, the company said.