Sun Pharma, Divi's Lab Shares Decline Amid Speculation of 100% Tariffs on Global Drugmakers by US

Pharma Shares Decline as US Tariffs Loom

Pharma shares took a hit in Thursday's trade, with the Nifty Pharma index falling more than 5 percent for the fourth consecutive session. The index, which tracks the performance of 20 major pharmaceutical companies, saw all its constituents trading in the red. Biocon, one of the largest pharmaceutical companies in India, was among the major losers, with its shares declining up to 4 percent.

Other major pharmaceutical companies, including Sun Pharmaceutical Industries and Divi's Laboratories, also saw significant declines. Sun Pharmaceutical Industries' shares fell over 3 percent, while Divi's Laboratories' shares dropped more than 2 percent. Ipca Laboratories and Torrent Pharmaceuticals also fell 3.83 percent and 3.67 percent, respectively, in intraday trade.

The decline in pharma shares is attributed to reports that the administration of US President Donald Trump may announce tariffs on drugmakers that have not entered into agreements to ensure lower prices in the United States. According to reports, the US has been considering a 100 percent tariff on imported branded and patented medicines. Trump has for months indicated tariffs on pharmaceutical companies, ranging from 100 percent to 200 percent, aimed at pushing manufacturing back to the US and reducing drug prices.

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Several global drugmakers, including Pfizer Inc. and Eli Lilly and Company, have entered into agreements with the White House, securing a three-year relief from such levies. However, companies without agreements or ongoing negotiations with the administration may face tariffs of up to 100 percent, according to sources.

The pharmaceutical sector had earlier been spared from global levies imposed in 2025 after the administration reached individual agreements with more than a dozen companies. However, with the proposed tariffs, the sector is likely to face significant challenges in the coming days.