|
The Nifty Pharma index plunged 4.11% to 20,549.50, reversing its 2.25% gain in the previous session when the industry was initially exempted from tariff levies under Trump's reciprocal tariffs policy. Laurus Labs (down 8.06%), IPCA Laboratories (down 6.7%), Granules India (down 6.15%), Lupin (down 5.69%), Gland Pharma (down 5.6%), Aurobindo Pharma (down 5.58%), Cipla (down 5.23%), Ajanta Pharma (down 5.23%), Biocon (down 4.77%), Natco Pharma (down 4.67%), Divi's Laboratories (down 4.5%), Zydus Lifesciences (down 4%), Dr. Reddy's Laboratories (down 3.95%), JB Chemicals & Pharmaceuticals (down 3.83%), Alkem Laboratories (down 3.54%), Sun Pharmaceutical Industries (down 3.39%), Glenmark Pharmaceuticals (down 3.06%), Abbott India (down 1.24%), Mankind Pharma (down 0.28%) slumped. Speaking to the media, Trump signaled a tough stance on the pharmaceutical industry. Pharma tariffs are going to come in at levels you haven't really seen before. We are looking at pharmaceuticals as a separate category. We will be announcing that sometime in the near future, and not too distant future. It's under review right now, he stated. The announcement comes amid a broader trade shake-up, as the U.S. government has imposed sweeping reciprocal tariffs on imports from multiple countries, targeting what Trump calls unfair trade practices. While pharmaceuticals were initially spared from the latest levies, Trump's latest remarks suggest the industry may not be off the hook for long. The Trump administration is set to investigate pharmaceutical and semiconductor imports under Section 232 of the Trade Expansion Act of 1962, which allows restrictions on goods deemed a national security threat. Industry experts believe that if these tariffs come into effect, pharma companies may try to pass on the added costs to payors. However, a full pass-through to consumers remains challenging, meaning the burden could be shared across the supply chain. Investors will be closely watching for further updates as uncertainty looms over the sector. Powered by Capital Market - Live News |