US tariffs: Only Sun Pharma exposed to some headline risk
The US last week announced the imposition of a 100 per cent tariff on branded or pat ing the US from October 1, except for pharmaceutical companies building manufacturing plants in the US. The exemption covers projects where construction has started, including sites that have broken ground or are under construction
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New Delhi: The imposition of a 100 per cent tariff by the US on imports of branded and patented pharmaceutical products starting October 1 may not significantly hurt Indian drug makers, with Sun Pharma being exposed to some headline risk but with limited earnings impact, according to analysts.
Among Indian companies, only Sun Pharma has sizeable sales from patented drugs in the US (about 17 per cent of 2024-25 revenue), HSBC Global Investment Research said in a report.
The US last week announced the imposition of a 100 per cent tariff on branded or patented drugs entering the United States from October 1, except for pharmaceutical companies building manufacturing plants in the US. The exemption covers projects where construction has started, including sites that have broken ground or are under construction.
HSBC said Sun Pharma reported global sales of $1.217 billion from patented products in FY25, of which the US market accounted for about $1.1 billion (85-90 per cent of global sales), amounting to 17 per cent of total revenue and 8-10 per cent of consolidated EPS in FY25. "Generic (off-patent) drugs remain exempt from US tariffs, hence there is no impact for other Indian companies," it added. Anuj Sethi, Senior Director, Crisil Ratings, said the new tariff "may not significantly hurt I ndian drug makers".
