PHARMA Stocks News: US President Donald Trump announced a 100% tariff on branded and patented drugs from 1 October, causing a big fall in pharma stocks on 26 September. However, the discount of generic medicines can provide relief to many companies
Pharma stocks craied: On 26 September 2025, there was a major decline in Indian pharma stocks on Friday. The reason is the new announcement of US President Donald Trump. From October 1, the US will impose 100% tariff on any branded or patented medicine, if that company has not set up a manufacturing unit in the US. Trump wrote on Trush Social, ‘From 1 October 2025 we will put 100% tariff on every branded or patented pharmaceutical product, if the company is not building its pharma plant in the US. This rule will not apply to companies that have started construction.
Strong shock on stock market
By 9:30 am on Friday morning, the Nifty Pharma Index fell 2.3%. All pharma stocks were in red mark. Natco Pharma, Gland Pharma and Sun Pharma have suffered the most. These shares fell to about 4%. Tariffs on branded drugs will directly affect the companies that export expensive medicines to the US.
Generic medicines get relief
The good news is that generic drug formulations i.e. generic drugs are exempted from tariffs. This relief is great for India, as the supply of Indian generic drugs to the US is up to 45%. Companies like Dr. Reddy’s, Lupin, Orobindo and Sun Pharma have been earning profits from the US market for a long time. Experts believe that if the generic also impose tariffs, then the prices of drugs in the US will touch the sky and there may be drug shortage.
How much has the effect on the Forma companies in Trump’s tariff?
Biocon: Recently, a new plant has been started in America, so there is no threat of tariff.
Sun pharma: Dependent on branded drugs, so pressure may have to be faced.
Indian generic companies: Safety for now, but further the policy changes, difficulties may increase.