Sun Pharma tanks 7%, NIFTY PHARMA index down 2% as Trump makes this BIG announcement; all you need to know

Trump said that the prices of prescription drugs in the US are very high and that he would sign an executive order today that would reduce the prices of medicines immediately, by 30% to 80%.

The move is expected to have an adverse impact on Indian pharma companies that derive a notable portion of their revenue from the US generics market, such as Sun Pharma, Dr Reddy's, Cipla, among others.

The NIFTY PHARMA index cracked as much as 1.98% to 20,653.80 levels. The biggest loser on the index was Sun Pharma as the stock slipped as much as 6.94% in the early trade.

At the time of writing this news, as many as 12 stocks were trading in the green, and seven were in the red.

Other stocks that were witnessing selling were Lupin (down 2.5%), Aurobindo Pharma (down 2.12%), Divi's Labs (down 1.17%), and Glenmark Pharma (down over 1%).

Sun Pharma has a strong US generics business through subsidiaries like Taro Pharma. Besides, Sun Pharma has a high exposure to US dermatology and specialty generics.

Similarly, the United States is Lupin's largest single market by revenue. Lupin's North American operations, including the US, accounted for 36.2% of its 9M FY2024 sales. Within the US, Lupin is the third-largest pharmaceutical player by prescriptions and the seventh-largest company in the IPM, according to IQVIA data.

At 3:52 AM, Trump wrote, "For many years the World has wondered why prescription drugs and Pharmaceuticals in the United States of America were SO MUCH HIGHER IN PRICE THAN THEY WERE IN ANY OTHER NATION, SOMETIMES BEING FIVE TO TEN TIMES MORE EXPENSIVE THAN THE SAME DRUG, MANUFACTURED IN THE EXACT SAME LABORATORY OR PLANT, BY THE SAME COMPANY??? It was always difficult to explain and very embarrassing because, in fact, there was no correct or rightful answer. The Pharmaceutical/Drug Companies would say, for years, that it was Research and Development Costs, and that all of these costs were, and would be, for no reason whatsoever, borne by the “suckers” of America, ALONE. Campaign Contributions can do wonders, but not with me, and not with the Republican Party. We are going to do the right thing, something that the Democrats have fought for many years. Therefore, I am pleased to announce that Tomorrow morning, in the White House, at 9:00 A.M., I will be signing one of the most consequential Executive Orders in our Country’s history."

Trump added that Prescription Drug and Pharmaceutical prices will be reduced, almost immediately, by 30% to 80%.

"They will rise throughout the World in order to equalise and, for the first time in many years, bring FAIRNESS TO AMERICA! I will be instituting a MOST FAVORED NATION’S POLICY whereby the United States will pay the same price as the Nation that pays the lowest price anywhere in the World. Our Country will finally be treated fairly, and our citizens' Healthcare Costs will be reduced by numbers never even thought of before. Additionally, on top of everything else, the United States will save TRILLIONS OF DOLLARS. Thank you for your attention to this matter. MAKE AMERICA GREAT AGAIN," Trump added.

Pharma stocks performance

Data show that the NIFTY Pharma index has slipped over 10% so far in 2025. In the past one month, the index has gained over 0.7%.