Pharma companies’ stocks get a boost on U.S. tariff exemption

Indian pharma stocks surge as generic drugmakers exempted from U.S. tariff, boosting Nifty Pharma shares and industry outlook.

Indian pharma stocks were in focus on Thursday (April 3, 2025) early trading hours after the generic drugmakers got an exemption from U.S. tariff levy.

Also read: Front-end manufacturing in U.S. way forward to counter tariff impact on pharma: Natco Pharma CEO

Aurobindo Pharma, Dr. Reddy’s Laboratories, Sun Pharma, Lupin, Cipla, Natco Pharma, Gland Pharma were among the shares on the upswing. All the 20 entities part of the Nifty Pharma were in green even as the sectoral index of National Stock Exchange showed a 2.92% increase around 10.30 a.m. It was higher soon after market opening.

Organisations representing pharma firms and exporters hailed the development around U.S. tariff for their industry. Pharmaceuticals Export Promotion Council of India welcomed the tariff exemption. The move reaffirms commitment to uninterrupted supply of quality and affordable medicines, the body under the Commerce Ministry said.

“Pharmexcil welcomes U.S. tariff exemption... express our gratitude to the government of India for successfully negotiating exemption of Indian pharmaceuticals from U.S. reciprocal tariffs. This vital decision secures uninterrupted flow of essential and affordable medicines to Americans reinforcing India’s unwavering commitment to quality and reliable supply. Indian pharmaceutical industry is dedicated to strengthening the India-U.S. healthcare partnership, ensuring continued access to life-saving treatments...” chairman Namit Joshi said.

Separately, Pharmexcil director general Raja Bhanu said “We thank the Ministry of Commerce for having extensive and elaborate discussions with U.S. counterparts to ensure pharmaceuticals are exempted. The industry will ensure the seamless supply of quality and affordable medicines which is its U.S.P. ...continue to do so for the healthcare needs of U.S.A.”

It is win-win scenario because of the seamless supply of quality and affordable medicines to Americans reducing the healthcare costs to a great extent, he said.