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Informist, Friday, Jul. 24, 2026

MUMBAI – Investors are keenly looking at commentary from export-focussed pharmaceutical companies on how they plan to reduce the impact of loss of generic revlimid sales and stabilising their US revenue. While the US decision to hike import tariffs on generics to 100% in August 2028 and to 200% a year later caused some panic among investors, analysts said it is highly unlikely that Washington will follow through with its implementation despite its heavy dependence on Indian generics. Companies such as Cipla, Aurobindo, Piramal Pharma, and Sun Pharmaceutical Industries which have a US manufacturing footprint are better positioned if the tariff was to be implemented. Lupin, which announced its foray into the US recently, is also well-positioned, analysts said. 

Washington plans on re-shoring generic production to the US, according to US President Donald Trump. "We believe the high quantum of tariffs makes this latest diktat nearly impossible to implement," Kotak Securities said. Nevertheless, despite the healthy fundamentals, if there is persistent tariff-related rhetoric by the US, "it could marginally weigh on the sector multiples," the brokerage warned. The highest earnings per share impact will be on Biocon and Dr. Reddy's Laboratories. For contract research, development, and manufacturing organisations focussed on developing innovator drugs, it expects the tariff impact to be at least partially passed on to clients. 

Bullish bets have already started on those pharmaceutical companies which have indicated a recovery in US sales on the back of new product launches. Cipla said it expects its US sales trajectory to gradually improve in the upcoming quarters, backed by scale-ups in generic Ventolin, three upcoming respiratory drug launches, and a key peptide asset. The Indian pharmaceutical major is still confident of closing the financial year 2026-27 (Apr-Mar) with a $1 billion annual revenue run-rate in its North American market. Its shares ended over 1% higher from Thursday on the National Stock Exchange, and it was among the handful of constituents of the Nifty Pharma index that closed the session higher. 

The Nifty Pharma index will likely fall back to its 25000 levels and retest consolidation levels, said Jatin Gedia, vice president of technical research at Teji Mandi Investment Technologies. The sectoral index has risen sharply in the last four months, acting as a defensive bet due to inelastic demand of pharmaceutical products, while several other crude-sensitive sectors corrected sharply. 

This week, the Nifty Pharma index ended 0.4% lower at 25548.15 points. Laurus Labs, Torrent Pharmaceuticals rose nearly 5% and over 4% respectively. Sai Life Sciences, Dr. Reddy's Laboratories, and IPCA Laboratories were the worst hit constituents and fell 3-7%. 

TOP HEADLINES

* Acutaas Chemicals Apr-Jun consol PAT surges 68% YoY to INR 742.6 million
* Aurobindo Pharma's arm to acquire 80% stake in A1 Biochem Group for $17 mln
* Analyst Concall: Cipla Working on site transfer for Lanreotide supply in US
* Cipla sees steady growth, eyes $1 bln US sales FY27 on new pdt launches
* Earnings Review: Cipla's PAT falls for 3rd qtr on high expenses, drab sales
* Zydus Life to conduct late-stage trial of Desidustat tablet to treat anaemia
* Analyst Concall: Dr Reddy's sees Q2 EBITDA margin near 20% ex-Semaglutide
* Dr Reddy's sees strong growth in Oct-Mar as semaglutide supply to normalise
* Earnings Review: Dr Reddy's PAT dn for 3rd quarter as US Revlimid sales fall
* HC notice to govt against nationwide rollout of Human Papillomavirus vaccine
* Earnings Outlook: Laurus Labs Q1 PAT seen up on contract mfg, API ops growth
* Analyst Concall: Focus on capacity utilisation, says Anthem Biosciences
* Trump to impose steep tariffs on generic drugs from 2028 to drive mfg in US
* Earnings Outlook: Cipla Q1 PAT seen down as low US sales offset India growth
* MedPlus Health Apr-Jun consol PAT falls 22% on year to INR 331.76 mln
* Analyst Concall: Granules India expects US FDA to clear Gagillapur unit soon
* Aurobindo Pharma's CuraTeQ unit gets Brazilian regulator's approval
* Earnings Review: Anthem Biosciences Q1 PAT plunges on year on weak sales
* India approves first dengue vaccine 'Qdenga' for people aged 4-60 years
* Earnings Review: Granules India Q1 PAT rises 60% YoY, revenue up 22%
* Glenmark Pharma arm gets US FDA nod to expand use of nasal spray RYALTRIS
* Lupin's US arm licenses 2 oncology programmes to Kaveri Therapeutics
* Earnings Outlook: Revlimid, semaglutide to cause drag on Dr Reddy's Q1 PAT
* Emcure Pharma expands use of Poviztra drug following central drug body nod
* Torrent Pharma to allot 41.92 mln shrs to JB Chemicals' shareholders
* Natco Pharma gets tentative approval from US FDA for Olaparib tablets
* US FDA issues one observation to Cipla US arm InvaGen Pharma's mfg unit

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

End

Reported by Eshitva Prakash

Edited by Akul Nishant Akhoury

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