Sun Pharmaceutical Industries Ltd. fell nearly 5% on Friday after former US President Donald Trump announced plans to impose a 100% tariff on the pharmaceutical sector, unless companies have manufacturing facilities in the United States.
Other Indian pharma stocks like Cipla, Dr Reddy’s, Lupin, and Biocon also saw minor declines. However, the tariff mainly targets branded and patented drugs, where global giants like Pfizer and Novo Nordisk dominate. It’s unclear if Indian complex generics or specialty drugs will face scrutiny.
Sun Pharma and Biocon are key players in branded drugs in the US. Sun Pharma exports specialty products such as ILUMYA, CEQUA, WINLEVI, and ODOMZO, which contribute around 19% of its total revenue. In FY25, global specialty sales grew 17.1%, reaching $1,216 million, with ILUMYA alone generating $681 million, up 17%. Specialty research and development accounted for 36% of the company’s total R&D in Q4FY25.
The stock initially jumped 4.88% to Rs 1,548 but later trimmed gains to trade 2.94% lower at Rs 1,579.60 as of 09:37 a.m., against a 0.50% drop in the NSE Nifty 50 Index. Over the past year, Sun Pharma’s stock has fallen 16.79%. Out of 44 analysts, 35 recommend ‘buy,’ four suggest ‘hold,’ and five advise ‘sell.’ The average 12-month price target indicates a 22.1% upside.
