Pharma Shares Plummet Amid Looming US Tariffs

Pharmaceutical companies' shares fell over 11% as reports of impending US tariffs on pharma imports emerged. The Trump administration's potential tariffs on pharmaceuticals followed a 26% tariff on Indian imports. Indian pharma firms face challenges as India supplies nearly half of US generic medicines.

In a dramatic downturn for the pharmaceutical sector, shares of prominent companies dropped by over 11% on Friday. This followed reports that the Trump administration plans to introduce unprecedented tariffs on pharmaceutical imports.

President Donald Trump emphasized the significance of these impending tariffs, which are set to impact pharmaceutical and semiconductor sectors. The US has already imposed 26% reciprocal tariffs on Indian imports, citing high duties on American products.

Industry experts warn of potential challenges for Indian pharmaceutical firms, which supply nearly half of US generic medicines. Aamar Deo Singh, Senior VP Research at Angel One Ltd, highlighted the need for India to improve its infrastructure and business environment to leverage tariff arbitrage opportunities.

(With inputs from agencies.)