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Pharmaceutical companies saw their shares trade with gains on July 9
Pharma stocks in India rallied on July 9
Pharma Stocks Surge: Pharmaceutical companies saw their shares trade with gains on July 9, even after US President Donald Trump threatened to levy 200 per cent tariff on all pharmaceutical imports.
US President Donald Trump said pharmaceutical manufacturers would be given time to relocate their operations to the United States before fresh import duties are imposed. “We’re going to give people about a year, a year and a half to come in, and after that, they’re going to be tariffed,” Trump said.
“They’re going to be tariffed at a very, very high rate, like 200 percent,” he added. “We’ll give them a certain period of time to get their act together.”
Despite the warning, Indian investors appeared largely unfazed. The Nifty Pharma index was trading 0.4 percent higher at 22,252.50 as of 9:25 a.m. Lupin, Biocon, Aurobindo Pharma, and Laurus Labs were among the top performers, rising as much as 1.5 percent in early trade.
However, experts warn that the potential tariffs could significantly impact Indian pharmaceutical companies that rely heavily on exports of generic drug formulations to the US. These companies operate on thin margins, and unless they are able to raise prices or shift production to the US, some may be forced to halt production altogether — a move that could trigger widespread drug shortages in the US market.
In April, Trump had initially threatened “never seen before” tariff levels on pharma imports, sparking concerns across the sector.
So far in July, the Nifty Pharma index has remained largely flat, up just 0.6 percent. Year-to-date, the index has declined by around 5.5 percent, weighed down by persistent fears of high US import tariffs. On Monday, the sector saw fresh pressure after brokerage Macquarie downgraded Dr. Reddy’s Laboratories and Aurobindo Pharma, while trimming price targets on five other major pharma stocks.
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Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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