Pharma stocks led by Natco, Wockhardt fall up to 5% after US tariffs on generic, patented drugs

Indian Pharma companies, from Sun Pharma Ltd. to Aurobindo Pharma Ltd., Gland Pharma Ltd., Lupin Ltd., Cipla Ltd

. among others fell up to 5% on Friday, September 26, after US President Donald Trump announced 100% tariffs on branded and patented drugs entering the US from October 1.

Eight out of the top 10 losers on the Nifty 500 index are Pharma stocks, and all of them, Natco Pharma, Wockhardt, Caplin Point, Alembic Pharma, Laurus Labs, among others fell up to 5% at the start of trade on Friday.



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.

Shares of Caplin Point and Wockhardt are down 4.5% each, while those of Natco Pharma, Laurus Labs, Alembic Pharma and Sun Pharma are down between 3% to 4%.