Impact on Indian Pharma Companies

Indian pharmaceutical stocks took a hit, as many of these companies rely heavily on U.S. sales for their revenue. Shares of key players such as Sun Pharmaceutical Industries Ltd. dropped 7%, while Lupin Ltd. and Aurobindo Pharma Ltd. saw declines of around 3%. The Nifty Pharma index also fell by 2.3%, reflecting the broader impact on India’s pharmaceutical sector.

Global Pharma Market Response

The U.S. move also rattled global pharmaceutical markets. Major American drug manufacturers such as AbbVie, Amgen, Pfizer, Eli Lilly, and Merck reported declines in premarket trading, falling between 2.1% and 3.6%. In Europe, companies like AstraZeneca, GSK, and Roche saw their shares drop by 3.3% to 6.8%, and pharmaceutical stocks across Asia and Australia followed a similar downward trend.

Also Read: India–UK Free Trade Agreement Finalized: A Game-Changer for Bilateral Trade

Uncertainties Over Implementation

While the U.S. executive order is expected to be signed shortly, there is still much uncertainty surrounding its specifics. Questions remain regarding whether it will affect government-run health programs like Medicare and Medicaid, and how it will influence pricing for different types of drugs, including generics and specialty medications.

Outlook

The announcement has introduced a layer of uncertainty in the pharmaceutical industry, especially for Indian companies with heavy exposure to the U.S. market. Investors are closely watching how the situation develops and its potential long-term effects on both Indian and global pharmaceutical markets.