New Delhi:
Shares of companies associated with pharma sector fell suddenly today amidst all -round selling in the stock market. This is because of the latest statement of US President Donald Trump, in which he has indicated to put tariffs on medicines in future. Talking to the media in Air Force One, Trump said, “I think the tariff in Pharma is going to come to the level that you have never seen before.” He said that a separate category will be made for the pharma sector and it will be announced soon.
Celebration in pharma companies till tomorrow, disappointed today
A day ago, when no such announcement was made on Thursday, there was a tremendous rise in the shares of pharma companies. But now after Trump’s statement, the atmosphere has completely overturned. Investors are afraid that if the tariff is imposed then the earnings of India’s pharma companies may be affected.
Shares of pharma companies drop up to 10%
Today many big pharma companies fell by 7-10%. Arvindo Pharma broke around 10%, Lares lab, Ipka lab fell by 9%. At the same time, Lupine, Zayadas, Cipla, Biocon shares dropped down by 7-8%. Due to all this, Nifty Pharma Index also fell by about 5%, while on Thursday the index was up 4.98%. That is, the fast that came a day ago, it was completely over today.
What does the report of City Bank say?
Earlier in early April, Citib Bank had estimated that the US is less likely to have tariffs on pharmaceutical companies. According to him, companies like Sun Pharma, Torrent Pharma and Divies Lab, whose dependence on American market is low, will not have much impact on their profits.
India and America’s pharmaceutical business strengthened
India buys about $ 800 million from the US every year, while the US exports about $ 8.7 billion drugs. There are strong business relations in the pharma sector between the two countries.
What does IPA say?
Indian Pharmaceutical Alliance (IPA) Secretary General Sudarshan Jain said that the trade between India and US is continuously increasing and under Mission 500, the target is to bring it to $ 500 billion. He said that Pharma sector is the backbone of this partnership, because India supplies cheap and essential medicines to the whole world.