New Delhi: US President Donald Trump’s latest move to impose a 100% tariff on branded and patented pharmaceutical imports from October 1, 2025, has raised
concerns for the Indian pharma sector, which relies heavily on the US market. Here’s a breakdown of key companies and how exposed they are:
Dr. Reddy’s: The Most Exposed
Dr. Reddy’s tops the risk chart, with a staggering 47% of its revenue dependent on the US market, the highest among major peers. Nomura estimates DRL’s US revenues at $1.5 billion in FY26, meaning any expansion of tariffs could be catastrophic.
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"Products manufactured in the US should contribute less than 15% to FY27F revenues," Nomura noted, highlighting that most of DRL's American operations remain vulnerable. Select products, like gSuboxone, are currently formulated in the US, offering limited protection.
Sun Pharma: Specialty Brands in the Crosshairs
Sun Pharma’s 37% exposure to the US market puts $2.1–2.3 billion of FY26 revenues at risk. Its main vulnerability lies in specialty brands, which account for 55–57% of revenues, with only 10% of US specialty revenues produced domestically, according to Nomura.
The company’s top-selling product, Ilumya, is formulated outside the US, likely in Ireland, making it susceptible to the tariff. However, Nomura analysts note, "Since Ilumya is a chronic therapy, Sun may be able to pass on the impact of tariffs and retain existing volumes." Shares of Sun Pharma have already fallen up to 5% to a fresh 52-week low of Rs 1,547.25 on the BSE.
Cipla: Relatively Safer
Cipla appears least exposed, with 30% of revenues tied to the US, estimated at $900–950 million in FY26/27. Its Invagen sites in the US contribute 25–30% of US revenues, offering some protection against tariffs.
"The company is expanding its US manufacturing post regulatory issues at Indian sites," Nomura noted, providing a buffer against future tariff escalations.
