Sun Pharma, Zydus Life, Dr Reddy's Labs, Lupin: Pharma shares crash on Trump's fresh tariffs

Shares of pharma firms such as Sun Pharma, Zydus Lifesciences, Dr Reddy’s Laboratories and Lupin were among the top losers in Wednesday’s market action after US President Donald Trump in a social media post said all generic drugs being brought into the US will continue to bear a tariff of zero per cent for a two-year period effective August 1, 2026. However, after two years, such exports would attract a 100 per cent tariff for one year and 200 per cent thereafter. 

Also read: Sun Pharma, Aurobindo, Lupin, Zydus Life shares in focus after Trump’s generic drug tariff roadmap

The BSE Healthcare index crashed 978 pts to 50,464 on fresh tariff shock. Shares of Sun Pharma fell 1.91% to Rs 1924 against the previous close of Rs 1962.15. Market cap of the firm fell to Rs 4.64 lakh crore. 

On similar lines, Lupin shares slipped 4.32% to Rs 2410.05 on BSE. Market cap of the firm fell to Rs 1.10 lakh crore. 

Zydus Lifesciences stock slipped 2.74% to Rs 1112.20. Market cap of the firm slipped to Rs 1.11 lakh crore. 

Shares of Dr Reddy’s Laboratories too fell 1.80% to Rs 1184. Market cap of the pharma firm fell to Rs 99,0,50 crore. 

Shares of Alkem Laboratories too slipped 3.13% to Rs 5,504 against the previous close of Rs 5682. Market cap of the firm also fell to Rs 66794 crore. Aurobindo Pharma stock too slipped 4.13% to Rs 1515.15 against the previous close of Rs 1580.45. 

The Nifty pharma index too tanked 547 pts or 2% to 25,545. 

India is the largest exporter of generic drugs to the US.

The country is one of the world’s largest suppliers of generic medicines, exporting pharmaceutical products to markets across the globe. 

According to a report by the Global Trade Research Initiative (GTRI), India exported pharmaceutical products worth $9.7 billion to the US in 2025. The US accounted for 38% of India’s total pharmaceutical exports, which stood at $25.8 billion during the year. The data depicts Indian pharmaceutical industry’s strong dependence on the US market and its position as a key global supplier of affordable generic medicines.