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What is the story about?
Indian Pharma companies, from Sun Pharma Ltd. to Aurobindo Pharma Ltd., Gland Pharma Ltd., Lupin Ltd., Cipla Ltd
. among others will be in focus on Friday, September 26, after US President Donald Trump announced 100% tariffs on branded and patented drugs entering the US from October 1.
The measure though, will not apply to those companies that are currently building their drug manufacturing plants in the US or those who already have plants.
In August, Trump had warned that tariffs on Pharma imports in to the US could eventually reach up to 250%. He had said that he would initially start with a "small tariff", and gradually raise it to 150% and then 250%.
The Pharmaceutical sector was under investigation for national security by the US Commerce Department under Section 232. The latest probe also expands the list of goods that could face higher tariffs to surgical mask, N95 respirators, gloves, and other medical devices including syringes and needles.
“Pharmaceuticals, such as prescription drugs, over-the-counter drugs, biologics, and specialty drugs, will not be covered under this investigation as those imports are being examined in a separate Section 232 investigation,” the Commerce Department said.
Over the last one month, the Nifty Pharma index has declined 2% with stocks like Cipla, Divi's Laboratories and Ajanta Pharma declining between 5% to 6%.
The measure though, will not apply to those companies that are currently building their drug manufacturing plants in the US or those who already have plants.
In August, Trump had warned that tariffs on Pharma imports in to the US could eventually reach up to 250%. He had said that he would initially start with a "small tariff", and gradually raise it to 150% and then 250%.
The Pharmaceutical sector was under investigation for national security by the US Commerce Department under Section 232. The latest probe also expands the list of goods that could face higher tariffs to surgical mask, N95 respirators, gloves, and other medical devices including syringes and needles.
“Pharmaceuticals, such as prescription drugs, over-the-counter drugs, biologics, and specialty drugs, will not be covered under this investigation as those imports are being examined in a separate Section 232 investigation,” the Commerce Department said.
Over the last one month, the Nifty Pharma index has declined 2% with stocks like Cipla, Divi's Laboratories and Ajanta Pharma declining between 5% to 6%.
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