Shares of Indian pharmaceutical companies dropped by as much as 7 percent on Monday, 12th May, after the US President Donald Trump announced plans to sign an executive order aimed at significantly reducing the cost of prescription and branded drugs — by anywhere between 30 percent and 80 percent, effective immediately.
While the Nifty Pharma index has remained relatively steady over the past month, it has declined by over 10 percent since the beginning of 2025. Monday’s trading saw the index fall by an additional ~2.4 percent.
President Trump also revealed plans to implement a “most-favoured nation” pricing strategy, under which the U.S. would pay the same price for pharmaceuticals as the country offering the lowest price globally. He claimed the measure would cut healthcare costs in the U.S. to levels previously unimaginable.
This initiative appears to primarily target high-cost, branded, and innovative drugs. Although generic drugs already play a role in making post-patent treatments more affordable in the U.S., typically reducing prices by 80 percent to 90 percent, the new policy could still affect global pricing strategies.
The decision is likely to negatively affect Indian pharmaceutical firms like Sun Pharma, Dr. Reddy’s, and Cipla, which earn a significant share of their revenue from the U.S. generics market.
Following are a few pharma stocks that saw steep declines on Monday despite an otherwise upbeat broader market falling by up to 7 percent on Monday:
Aurobindo Pharma Limited
With a market cap of Rs. 69,455 crores, the shares of an integrated global pharmaceutical company moved down by nearly 4 percent on BSE to hit an intraday low at Rs. 1,120 on Monday.
Lupin Limited
With a market cap of Rs. 91,974 crores, the shares of a global pharmaceutical leader moved down by nearly 3 percent on BSE to hit an intraday low at Rs. 1,973.95 on Monday.
Glenmark Pharmaceuticals Limited
With a market cap of Rs. 39,007 crores, the shares of a research-led, global pharmaceutical company moved down by nearly 2.5 percent on BSE to hit an intraday low at Rs. 1,360 on Monday.
Sun Pharmaceutical Industries Limited
With a market cap of Rs. 4.04 lakh crores, the shares of the world’s leading specialty generics company moved down by nearly 7 percent on BSE to hit an intraday low at Rs. 1,623.5 on Monday.
Biocon Limited
With a market cap of Rs. 39,475.7 crores, the shares of an innovation-led global biopharmaceuticals company moved down by nearly 4 percent on BSE to hit an intraday low at Rs. 317.9 on Monday.
Suven Pharmaceuticals Limited
With a market cap of Rs. 27,331.3 crores, the stock moved down by nearly 3.4 percent on BSE to hit an intraday low at Rs. 1,041.65 on Monday. Cohance Lifesciences Limited, formerly Suven Pharmaceuticals Limited, is a leading technology-driven CDMO, providing integrated solutions in custom synthesis, process R&D, and manufacturing for global innovators.
Written by Shivani Singh
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