Tariff impact on pharma companies
US President Donald Trump again again put another whip on the world on the world. Since coming to power, he has been in constant discussion due to his policies. Last week, the impact of the tariff news was somewhat dim, so he broke the bomb of H-1B visa and then announced to put 100 percent tariff on the pharma sector in the early hours today. The new tariffs will be implemented on 1 October 2025. Indian companies are already facing 50 percent tariffs imposed by Trump. Its impact is being seen on auto companies including textile.
At the same time, the decision taken on pharma will cause strong loss to the country’s major pharma companies. Because data shows that India contributes about 6 percent to some pharma import in America. According to the Equity Master’s report, India’s pharmaceutical exports in 2024 were US $ 12.72 billion, making it the country’s largest industrial export area. The tariff on the trump can have the highest impact on these 5 companies of the country. Because their market is the highest in America. There is one more understanding here that India supplies most of the generic medicines to America and Trump has announced to put tariffs on pharma on branded medicines.
Aurobindo Pharma
Aurobindo Pharma had a huge investment in the United States in 2023-24 and contributed 48% to the US to the US. The tariff is also expected to affect Aurobindo Pharma. However, the export of Aurobindo is of most generic medicines, which is not a matter of tariff. Aurobindo pharma produces and sells generic medicines, active pharmaceutical ingredients (API), injections, biosimilors and vaccines. It works in many medical fields such as neuroscience, cardiovascular, anti-retrovirals. The company sends its medicines to more than 125 countries and more than 70% of its earnings come from foreign operations. It is included in the top 10 generic pharmaceutical companies in the world. Later, Aurobindo is planning to increase its manufacturing capacity and aims of an annual production capacity of more than 50 billion units. The company has commercialized its plant in China, which will start giving revenue in 2026.
Piramal Pharma
In FY 2024, Piramal Pharma earned 41% of its total revenue from North America. Due to this, the company has a lot of investment in America and now the implementation of tariffs can have a big impact. Piramal Pharma holds a strong position with products such as sevoflurren and isoflurane for inhalation anesthesia in the US market. Also, its brand Gabloophen, Baiklofen Pre-Filled Syringe and Vial area are number one with more than 70% market share in the US Interhetical market.
Gland pharma
In FY 2024, 54% of the total revenue of Gland Pharma came from the US market. The company’s growth occurred in the US due to increasing sales of key products such as Ketorolak Tromethemine, Roburonium, Anoxaparin Sodium and Carboplatin. Gland pharma creates a wide range of complex injections, which includes drugs related to anesthesia, anti-infection, heart, oncology and eye.
Sun pharma
India’s largest pharmaceutical company Sun Pharma earned 32% of its revenue from the US market in 2023-24. It is the second largest generic dermatology company in the US and leads to many medical fields. Sun pharma produces generic, branded generic, special products and active pharmaceutical materials (APIs). Its portfolio covers areas such as neurology, cardiology, gastroenterology and oncology.
Dr. Reddy’s Lab
America is a very important market for Dr. Reddy’s, from where about 47% of its generic drug business comes. The company has received several approval for generic and biosimiller drugs in the US. For example, it has got a license to sell Merc & Company’s authorized generic version of Simastatin. Dr. Reddy’s generics, branded generics, biosimilors and over-the-counters make and sell drugs, which are more available for gastroenterology, oncology, heart disease, skin disease and diabetes.