Dr Reddy's, Aurobindo Pharma: Why pharma stocks fell in early trade today

Pharmaceutical stocks tumbled on February 19, 2025, following U.S. President Donald Trump's announcement of potential 25% tariffs on pharmaceutical imports. Dr Reddy's Laboratories fell 5.8%, Aurobindo Pharma plunged 10%, and Sun Pharma dropped 3.2%. Other major pharma companies like Lupin, Glenmark, and Cipla also experienced significant declines. The proposed tariffs could severely impact Indian drugmakers, who supply nearly 40% of generic drugs to the U.S. market. Trump's move aims to push companies to set up production in the U.S., potentially making Indian exports less competitive in the world's largest pharmaceutical market.

 

Source: The Economic Times, Moneycontrol