Sector Pharma, the biggest hero of yesterday, has fallen the most in the market today. Actually, US President Donald Trump has dropped a large tariff bomb on the pharma region. Today Trump announced that the US would soon announce a tariff on pharma companies. Trump has warned the pharma sector that he will soon announce tariffs on pharma. Pharma companies will have to face tariff rates before never seen. He also said that the tariff on pharma will be in a separate category.
American Tariff: Impact on Indian Pharma
India has imposed a 10 percent tariff on pharma imports from the US. America does not impose any duty on drug imports from India. In such a situation, mutual tariffs on Indian medicines can be maximum 10 percent.
American Pharma Tariff: Who is at risk?
Market experts say that imposing 10 percent tariffs on pharma exports from India to America will affect generic and CDMO companies. Companies that will use more American generic drugs will have more impact on them. Ebitda of these companies may fall by 9–12 percent at a time.
Pharma: Effect of American tariff
Brokerage firm City says that the US contributes 50 percent to the revenue of Gland Pharma. Applying tariffs in the US can reduce its Ebitda by 8-10 percent. America accounts for 48 percent of Aurobindo Pharma’s revenue. The imposition of tariffs in the US may reduce its Ebitda by 12-13 percent. America contributes 47 percent of Dr. Reddy’s income. The imposition of tariffs in the US can reduce its Ebitda by 10-12 percent. America accounts for 46 percent of Zidas’s revenue. Applying tariffs in the US can reduce its Ebitda by 8-10 percent.
America accounts for 37 percent of lupine’s revenue. The imposition of tariffs in the US may reduce its Ebitda by 6-7 percent. America accounts for 29 percent of Cipla’s revenue. Applying tariffs in the US can reduce its Ebitda by 4-5 percent. America contributes 32 percent to the revenue of Sun Pharma. Applying tariffs in the US can reduce its Ebitda by 2-3 percent. America accounts for 9 percent of Torrent Pharma’s revenue. Applying tariffs on America can reduce its Ebitda 1-2 percent.
Jefferies says Cipla, Sinzen, Dr. Reddy’s, Piramal Pharma, Lupine and Sai Life Sciences have set up their manufacturing units in the US. In such a situation, these companies may get some relief from Trump’s tariff wastage.
The post Trump gave bitter bullet to the pharma sector, know who will be the biggest loss and who is the lowest risk first appeared on News India Live | Breaking India News, The Indian Headline, India Express News, Fast India News.
