After Trump’s decision, there has been a decline in pharma stocks.
US President Donald Trump put 100 percent on branded and patented pharma import on Thursday. After which, once again India’s pharma sector and the export to America have come into the limelight again. The new American tariffs will be applicable from October 1. As soon as the stock market opened on Friday, the pharma index broke more than 2 percent.
Out of a total of 119 pharma companies in the country, 112 companies are seeing a decline in shares. This figure was even bigger in the morning session. Due to which the valuation of the pharma sector has seen a decline of more than 74 thousand crore rupees during the business session. From Divis Lab to Sun Pharma, Dr. Reddy’s etc., there is a big decline in the stock market.
Earlier, Trump had announced on Truth Social that from October 1, 2025, we will impose 100 % tariffs on any branded or patented drug product. If someone is setting up or setting up his plant in America, then no tariff will be applied to it. Neither he nor the White House has yet given any clarification about how these tariffs will apply. Let us try to understand in what way pharma stocks have been destroyed in the stock market after this decision.
America’s pharma export to America
America is a big market for India in terms of pharma exports. India’s US has an important role in total exports. Also, India is far ahead in pharma exports in other countries of the world. India’s Salna Pharma Export reached a record 30 billion dollars in FY 2025. The special thing is that in March, there was a growth of 31 percent in exports. According to a government release, other countries grew 6.94 per cent from $ 2.35 billion in August 2024 to $ 2.51 billion in August 2025 alone.
According to data from the Indian Pharma Export Promotion Council (Pharmaxil), India’s drug exports to the US in FY 2025 stood at $ 10.5 billion, which is an increase of 20.43 per cent year-on-year, which is 34.51 per cent of the total exports. India, often called the ‘pharmacy of the world’, ranks third in the world in terms of volume and 14th in terms of production value of medicines. In the first half of 2025, drugs of $ 3.7 billion (about 32,505 crore rupees) were sent abroad.
Which companies affected?
Donald Trump’s pharma tariff has survived generic medicines, which are the major medicines exported from India to the US, but Indian companies are ready to impact the announcement. Major companies like Dr. Reddy’s, Aurobindo Pharma, Zidas LifeSians, Sun Pharma, Cipla and Gland Pharma acquire 30-50 percent of their total revenue from the US market. Due to which on Friday, both major index Sensex and Nifty of the Indian stock market saw a big decline.
The Nifty Pharma Index where a huge decline of 2.42 percent reached a low of 21,445.50. On the other hand, BSE Healthcare fell 2.51 percent to 42,882.11 points. If we talk about Sun Pharma, then the company’s stock saw a decline of about 5 percent. After which the company’s stock came to a low of the new 52-week, while Gland Pharma fell 4.70 percent to Rs 1,880. Biocon fell 3.68 per cent to ₹ 342.85. Shares of other major pharmaceutical companies including Laus Labs, Ipca Labs, Divis, Zidas Life, Alchem Labs, Cipla, Ajanta Pharma, Dr. Reddy’s, Torrent Pharma, Abbot India and Glenmark also appeared trading with a decline of 0.8 to 3.2 per cent.
How much loss was done to the country’s major pharma companies
| Pharma Company Name | 25 Market cap on September ,In crores rupees, | 26 Market cap on September ,In crores rupees, | Loss ,In crores rupees, |
| Sun pharma | 390602.2 | 371228.04 | 19374.16 |
| Divis Lab | 156589.3 | 151120.64 | 5468.66 |
| Sepla | 121954.71 | 119143.72 | 2810.99 |
| Dr. Reddy’s | 106391.58 | 103929.59 | 2461.99 |
| Mankind Pharma | 104019.27 | 100795.62 | 3223.65 |
| Zaidus LifeSyinsage | 102525.17 | 98968.14 | 3557.03 |
| Lupine limited | 89590.11 | 87372.57 | 2217.54 |
| Alkum limited | 65800.2 | 64159.77 | 1640.43 |
| Abbott india | 64203.91 | 61962.96 | 2240.95 |
| Aurobindo Pharma | 63705.22 | 62145.77 | 1559.45 |
More than 74 thousand crores submerged of pharma sector
Although the market cap of the top 10 pharma companies of the country has lost a few thousand crores, but the total pharma sector has lost more than 74 thousand crore rupees. Talking about the data, the total market cap of the BSE Healthcare Index was seen on Thursday Rs 29,51,033.05 crore, which came to Rs 28,76,843.27 crore during the business session on Friday. This means that the pharma sector of the country suffered a loss of Rs 74,189.78 crore. 119 pharma companies are listed on BSE Healthcare. In which the shares of 112 companies are seeing a decline. While the shares of 7 companies are trading on the green mark.