Key Points

The data compiled by HSBC Global Investment Research noted that while the move poses a headline risk, the actual financial impact on the Indian pharma major is likely to be limited.

The new US policy applies only to patented or branded medicines and excludes generic drugs, which form the bulk of Indian pharmaceutical exports.

This means most Indian drug makers will not be affected. However, Sun Pharma, which earns about 17 per cent of its revenue from patented products in the US, could face earnings pressure if it does not realign its supply chain.

HSBC estimates that 8-10 per cent of Sun Pharma's FY26-FY27 earnings per share are exposed to downside risk in the worst-case scenario.

The company currently relies on global contract manufacturing partners for its patented products, with key components sourced from South Korea and Europe.

Crisil Ratings also said the impact of these tariffs on the Indian pharma sector would remain modest, as exports to the US are dominated by generics.

Anuj Sethi, Senior Director at Crisil Ratings, said that many domestic players have only a small share of patented drugs in their portfolio, and in most cases, the cost burden of tariffs is likely to be passed on to customers.

He added that strong balance sheets and existing manufacturing units in the US further support the sector's resilience.

Meanwhile, experts also echoed the same sentiment and said that the 100 per cent tariff on pharmaceuticals, imposed by the US President Donald Trump, will cause harm only to the US, and not India.

The 100 per cent tariff by Trump, to be implemented from October 1, targets the import of branded and patented pharmaceutical drugs and does not apply to generic medicines.

- IANS