Dubai: Indian pharmaceutical companies—particularly those with substantial exports to the US—have come under sharp investor focus following the latest tariff warning issued by US President Donald Trump. The proposed move includes a steep 200% import duty on pharmaceutical shipments to the US.
While the tariff threat isn’t aimed specifically at Indian firms, it has nonetheless triggered serious concern among major Indian pharma exporters and their shareholders.
“Several top Indian pharmaceutical companies—such as Syngene, Gland Pharma, Biocon, Dr. Reddy’s, Zydus Lifesciences, and Aurobindo—generate over 40% of their total revenues from the US market,” said Milan Vaishnav, founder of ChartWizard.ae.
“This level of dependence makes them particularly vulnerable to any sudden trade-related policy shifts,” he added.
Market Reaction and Investor Anxiety
India’s benchmark Sensex index showed only a modest decline in early trading, down by 141 points or 0.17% as of 9 a.m. UAE time. However, investor unease is evident—especially among UAE-based NRIs with sizable holdings in Indian equities, particularly in pharma stocks.
India is currently progressing toward a comprehensive trade agreement with the US, which could ease overall tariff burdens. However, it remains unclear whether Indian pharmaceutical exports will be included in the agreement’s scope.
“Indian generic medicines account for a significant share of affordable drugs for American consumers, playing a key role in reducing healthcare costs,” Vaishnav noted.
“Implementing such punitive tariffs could disrupt global pharmaceutical supply chains and result in higher drug prices for US patients.”
He warned that both countries have a strategic healthcare partnership at stake, and undermining it could have far-reaching implications for the industry and public health.
Performance of Key Pharma Stocks
So far in 2025, the stock performance of Indian pharma firms heavily reliant on US exports has been underwhelming:
- Biocon: +5.87% YTD
- Gland Pharma: +4.73% YTD
- Zydus Lifesciences: Flat
- Aurobindo Pharma: –14.87% YTD
- Syngene: –25.46% YTD
This lackluster performance highlights broader investor caution amid growing geopolitical and trade uncertainties, especially as US policy continues to evolve during an election year.
