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Informist, Friday, Apr. 11, 2025

MUMBAI - Shares of pharmaceutical companies are likely to rise further next week, extending gains from Friday as these stocks rose after US President Donald Trump announced a 90-day pause on tariffs on imports from most countries. This effectively put the 26% levy imposed by the US on Indian goods on hold. Pharma is among the sectors which is expected to have a major negative impact because of tariffs as many companies in the sector have operations in the US. However, any negative surprise on overall US tariff policies could trigger a sell-off in the sector, analysts said. 

The halt in US tariff came immediately after Trump said he will soon announce levies on pharma products imported to the US. Pharma was among the very few sectors on which Trump had not announced any tariff. Of India's total exports to the US, 10% accounts for pharmaceuticals products, Nomura Global Market Research said. Auto exports are already subject to 25% tariffs and higher tariffs on pharmaceuticals could be next in line, Nomura said in its report Friday. 

The Nifty Pharma was among the top gainers Friday and closed 2.4% higher at 20461.90 points, with all 20 constituents in the green. Shares of Laurus Labs gained the most and closed over 7% higher at INR 605.85 on the National Stock Exchange, followed by Granules India, up nearly 5%. Among the least gainers were Gland Pharma, Torrent Pharmaceuticals, and Glenmark Pharmaceuticals closed 0.1% higher each. 

However, uncertainty persists about the next leg of US policies as President Trump's unpredictable decisions on tariffs have been causing worries. "...we acknowledge the scenario is volatile to take a definitive call on tariffs and their impact. In the event material tariffs are implemented, we believe most of it will get passed on to end-customers, but some portion will be absorbed by manufacturers," Elara Securities said in its report Wednesday. This pose risk to the near-term margin profile of generic companies with a significant exposure to the US market. However, margins would rebound as the entire additional tariff burden would be eventually passed on, it said. 

Sun Pharmaceutical Industries closed 2% higher at INR 1,687.55. The stock rose after the company said it got a favourable ruling from the US Courts of Appeals for its alopecia drug Leqselvi. The company said that it was no longer under the court order that delays the drug's launch in the US. Media reports said that Sun Pharmaceuticals' revenue from Leqselvi is estimated to be $90 million in 2025-26 (Apr-Mar) and $125 million in FY27. Following the update, Centrum Broking maintained its 'buy' rating on the stock and revised its target price tp INR 2,030, which is 20% higher than Friday's closing price. 

TOP HEADLINES
* Granules India completes acquisition of Switzerland-based Senn Chemicals
* US court vacates preliminary injunction on Sun Pharma's drug launch
* Cipla gets US FDA's final nod for protein-bound Paclitaxel to treat cancer
* Biocon arm Biocon Biologics gets US FDA approval for Jobevne drug
* Biocon arm Biocon Pharma gets US FDA OK for Everolimus tablets
* Aurobindo Pharma arm completes pharmacokinetics study of denosumab biosimilar
* PRESS: Trump says US to come up with "major" tariff on pharma products
* Concord Biotech gets US FDA final OK to market Teriflunomide tablets
* Social influencer agrees before HC to remove disparaging claims on Dettol
* IPO Alert: SEBI approves INR 33.95-bln IPO of Anthem Biosciences
* Natco Pharma to launch Risdiplam at INR 15,900 post-clarity from court
* Sun Pharma launches Fexuprazan tablets in India to treat erosive esophagitis
* Glenmark Pharma to appoint Anurag Mantri as executive director, global CFO
* AstraZeneca Pharma gets regulatory nod to import, sell Osimertinib tablets
* Emcure Pharma arm to buy Manx Health's pdt portfolio for 19.7 mln sterling

Following are the resistance and support levels for the sector's key stocks for next week, as per calculations based on their prices on the National Stock Exchange:

End

Reported by Anjana Therese Antony
Edited by Akul Nishant Akhoury

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