Pharma Stocks Today: Dr. Reddy’s, Lupin, Sun Pharma Shares Jump As President Trump's Drug Price Order Lifts Sentiment

Pharma Stocks Today: Indian Pharma stocks were on a strong uptrend today, with the Nifty Pharma index rising by 1.19% in intraday trade. 

The rally was led by Granules, which jumped 3.66%, followed by Ajanta Pharma (3.35%), Ipca Labs (2.82%), Divi’s Labs and Glenmark (2.40% each), Zydus Life (1.71%), Dr. Reddy’s (1.46%), Alkem (1.38%), Lupin (1%), Sun Pharma (0.93%) and Cipla (1.15%).

Why Pharma Stocks Are Flying? 

The sharp gains came after U.S. President Donald Trump signed a new executive order directing drugmakers to cut prices to levels similar to those in other countries.

The order sets a 30-day deadline for drug companies to make "significant progress," or face further action such as tariffs, drug import policies, and pricing regulations.

"Everybody should equalise. Everybody should pay the same price," Trump said at a press conference. He added that U.S. patients were being charged unfairly high prices for prescription drugs compared to other developed nations.

Despite the strong language, analysts noted that the order was not as harsh as markets had feared. “The proposal is ambitious, but its actual implementation may face legal hurdles and resistance from the pharmaceutical industry,” said a senior pharma analyst to Reuters.

Also Read: Why Are BSE Sensex And Nifty 50 Falling Today After Monday’s Big Rally?

This led to a recovery in U.S. pharma stocks, with Merck rising 5.8%, Pfizer 3.6%, Gilead Sciences 7.1%, and Eli Lilly 2.9%.

"The executive order sparked initial concerns, but the absence of immediate enforcement measures helped calm investors," said another market expert to Reuters.

The order also suggests measures such as importing medicines, imposing export restrictions, and selling drugs directly to consumers at global prices. Trump said the idea was inspired by a friend who paid $88 for a weight-loss injection in London, while the same drug cost $1,300 in the U.S. 

India Pharmaceutical Exports

According to IBEF data, India’s pharmaceutical exports have shown steady growth in recent years. In FY24, India exported drugs and pharmaceutical products worth US$ 27.82 billion, up from US$ 25.4 billion in FY23 and US$ 24.59 billion in FY22. 

In FY21, exports had grown by 18% year-on-year to reach US$ 24.44 billion.

The United States continued to be the largest market for Indian pharma exports. During April to December FY25, the U.S. accounted for 32.76% of India’s total pharma exports, followed by the UK (2.82%) and Brazil (2.58%). 

In FY24, the top importers of Indian pharma products were the U.S. (US$ 8.73 billion), the UK (US$ 784.32 million), South Africa (US$ 718.54 million), the Netherlands (US$ 699.16 million), and France (US$ 667.49 million).