As US President Donald Trump again hinted at his intention to impose significant tariffs on pharma drugs, apprehensions have grown for Indian pharma exporters. India, which is the biggest supplier of generic medicines to the United States, might find some of its largest pharma companies affected by this policy change.

Major Highlights

America Is India's Largest Pharma Purchaser

• One-third of India's pharma exports come from the US.

• India sends mostly generic medicines to the US, which are currently exposed to zero US tariffs.

Trump Calls for Local Production

• Trump declared that America no longer produces medicines and called for expanding capacity through tariffs.

• He indicated that the announcement will be made "very shortly" without providing any additional information.

Leading Indian Companies Most Likely Impacted

• Biocon: Derives 44% of its revenue from US operations.

• Lupin: Derives 37% of revenue from the US.

• Sun Pharma: The nation's largest pharma company gets 32% from US sales.

• Laurus Labs: Posts 17% revenue from North America.

• Others at risk: Dr Reddy's, Aurobindo Pharma, Zydus Lifesciences, and Gland Pharma too export heavily to the US.

Stock Market Reacts

• On Wednesday, the Nifty Pharma index declined, pulling down the Nifty 50 by 0.59%.

• Top Losers: Biocon, Laurus Labs, and Lupin—down 3% to 5%.

• Sun Pharma, Cipla, and Dr Reddy's also dropped 1% to 2%.

Since India's pharma sector is so dependent on the US market, Trump's mooted tariff action has the potential to be a real challenge to revenues, investor confidence, and growth of exports going forward. The overhang will continue, experts caution, until greater clarity is given.