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US President unveils 100% tariff on Patented/Branded Drugs

ICICIdirect Research 03 Apr 2026 DISCLAIMER

Post Tariff announcement, Sun Pharma fell sharply by 6.3% intraday, with the BSE Healthcare Index declining around 3.5%. However, both recovered from their day’s lows, with Sun Pharma closing down ~2% and the BSE Healthcare Index ending with losses of less than 1% . 
U.S. President Donald Trump has revealed plans to impose a 100% tariff on branded/patented Pharma drugs, while exempting companies who has pricing deal and are building local presence.
As per India’s context, Indian pharma exports to the US stood at ~US$ 10 billion which is ~31% of the overall Pharma exports and majority of the exported drugs are generic in nature and are currently excluded. We expect limited impact as the tariffs targets branded/patented drugs which are largely dominated by global innovators. 
In Domestic Pharma, the news flow can be slightly negative for Sun Pharma where US specialty accounts for ~15-16% of total sales. But even Sun Pharma outsources some portion of its specialty products through CDMO companies across US and EU (which is subject to a lower 15% tariff), besides having manufacturing presence in US. Hence we expect minimal impact on Sun Pharma in worst-case scenario.
The news flow could be positive for CDMO companies which already have manufacturing facilities in US such as Piramal Pharma and Jubilant Pharmova as the momentum for domestic manufacturing grows. We continue to like Domestic focused Branded and Generic Pharma players in our coverage. Key picks include RPG Life Sciences (TP - ₹2470), P&G Health (TP - ₹6800), Abbott India (₹32150) among others.

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