His comments sent shockwaves across the market, dragging the nifty pharma index down by over 2% intraday. It was the Worst-Peerforming Sector of the day.
This isn’t the first time trump has hinted at such a move. He Had Dropped Clues Back in April, but this latest announs has added urgency and concen.
The Indian Pharma Industry, which reliabs heavily on experts to the us for generalics and speciality drugs, is now facing COCING CONCERNS Over Potential Revenue Disruptions. Any disruption in Trade or Pricing Could have a direct impact on reviews and margins.
In this article, we take a look at five Indian pharmaceutical companies
#1 Granules India
Granules India have a presence across the pharmaceutical manufacturing value chain, Including Active Pharmaceutical ingredients (APIS), Pharmaceutical Formuration Intermediate (FDS).
It produces and supplies paracetamol, metformin, guaifenesin, and methocarbamol apis.
It has over 10 manufacturing facilities, approximately eight of which are located in India and two in the us.
The company sells its products in global markets, including the united states of America, canada, latin america, europe, asia pacific, and India.
As per the fy24 annual report, 66% of Granules India’s Total Revenue Came from North America.
This dependence has only deepened in recent qualities with the US market contributing 79% of Revenue in the March 2025 Quarter, according to the latest investor presentation.
Data Source: Earnings Presentation FY25 and Q4 FY25
Given this significant exposure, any tariff-Related cost Increases Cold Affect Both the company’s topline and margins.
On 17 June 2025, Executive Director Priyanka Chigurupati said that the company is currently in the final stages of completeing remedies work work at its gagilapur facility. It expects this process to wrap up in the next few months, after which a USFDA Re-Inspension is Antikipated.
Once this hurdle is cleared, granules is aiming to launch 11 pending products in the us market, which was temporarily hold back during the compliance phase.
Production Had Been Scled Down to Prioritise Remedies, but the company is now prepaering to ramp up volumes against as operations stabilise.
It’s also working on its first Major Oncology Product Launch in the Us, Expected Around FY28.
To support its future growth strategy, the company is prepping its genome valley facility to meet upcoming usfda and european audits.
#2 Gland Pharma
Gland pharma has become a leader in general injectables. Its presence spans 60 countries, including the US, Europe, Canada, and Australia.
The company’s business model primarily involves business-to-business, which contributes 98% of its revenue. It provides contract development, dossier compilation, and technology transfer services. The balance come from business to consumer.
Geographically, the company has a strong presence in the US, which contributes 54% of its relevage. Its revelation in the region has grown from 2,585 Crore in FY22 to 3,037 Crore in FY24.
This makes the company vulnerable to tariffs.
Recently, Gland Pharma Received Approval from the US Food and Drug Administration (US FDA) for Angiotensin II Acetate Injection.
Since the company is the first to Submit for Exclusive, it Qualifies for 180 Days of EXCLUSIVITY for the General Drug.
#3 aurobindo pharma
Aurobindo Pharma has live built a strong presence more than 150 countries, manufacturing generic forms, apis, and injectables.
It’s the largest general drug company in the US and ranks amg the top 10 generic players in Eight European Countries.
That’s where the concern come in. According to its fy24 annual report, half (48%) of aurobindo’s revionue come from the us.
Data source: Aurobindo Pharma Annual Report 2023-24
As per the company’s investor Presentation in March 2025, it holds the top spot in the us in terms of oral solids prescription volume, commanding a 10.5% market share in the separation 2024 Quarter.
So, when talk of new Us tarifs on pharma imports Hits the headlines, Aurobindo’s Heavy Exposure Naturally Makes The Stock Vulnerable to a Fall.
On 16 June 2025, the company announced the incorption of a new wholy owned subsidian, cresedmo pharma llc, in the US. This move aims to further strengthen its us pharma business.
While the new entity signals aurobindo’s long-term Commitment to the US Market, The Proposed Tariffs Cold Present Near-Term Headwinds for the company.
Looking ahead, aurobindo is placing a big bet on the future of biosimilars. With 14 promising products currently in the pipeline, the company is eyeing a massive us $ 50 bilion+ market options.
If things go as planned, this single up an exciting new growth path and offer some something-needed Cushion against any potential policy shocks like the proposed Us Tariffs.
Also read: India seeks Financial Details of Pharmaceutical Marketing Practices, Industry Caught in a Bind
#4 Dr Reddy’s Laboratories
Dr Reddy’s Lab IS One of India’s largest pharmaceutical firms in the country. The company manufactures a wide range of pharmaceuticals with expertise spanning several therapeutic areas.
Through its step-byn subsidiya aurigene pharmaceutical services Ltd (APSL), IT’s Making Strong Strides in the CDMO space.
APSL Acts as a Comprehensive Contract Research, Development, and Manufacturing Organization (CRO/CDMO), offering end-to-end solutions to global pharmaceutical and specialized communications.
It has cgmp manufacturing facilites in the UK, Mexico, Usa, And India, Enabling It to Serve a Global Clientele.
Despite this Global Footprint, A Large Chunk of Dr Reddy’s Revenue Still come from the us.
Also, the latest investor presentation of Q4Fy25, Shows 42% of the total revenue from the US market.
This Heavy Dependence on the Us Leaves the company exposed to the potential impact of new tarifs.
In Response to Increasing Tariff Speculation, The company has indicated a desire to consider local manufacturing in the us, through acquisitions. This will not only help Reduce the Risk of Import Duties but
Meanwhile, Dr Reddy Focuses on Mainting Its Growth. The company plans to launch 15-20 new products in the us every year.
Also read: Dr. Reddy’s focused on Securing Supply Chains AMID Us Tariff Unce here
Conclusion
While the Possibility of Imports has rattled the sector, it’s important to take a balanced view before making investments decisions.
There’s no denying that companies with high revionue expert to the us, like aurobindo pharma, granules India, and dr reddy’s grouped face near-term challenenes if such tarifs. Margins may come under pressure and growth plans might require changes.
However, the long-term fundamentals of India’s pharmaceutical industry remain strong.
The government is actively supporting the sector through key initiatives Upgradation Assistant Scheme (PTUAS), and the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP), which aims to make Quality Medicines Accessible at affordable qualities.
Moreover, according to a recent eye-film report, the Indian Pharmaceutical Market is Poised to Reach a value of Around $ 130 billion by 2030, Signalling Strong Growth Potent.
It’s important to conduct thorough research on Financials and Corporate Governance Before Making Investments Decisions, Ensuring them Align with your Financial Goals and Risk Tolerance.
Happy Investing.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated from Equitymaster.com,
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