India-US Tariff War: These are the top Indian pharmaceutical companies that do business in the US

India-US Tariff War: US President Donald Trump has once again attacked global trade under his "America First" policy. In a proclamation issued on Thursday, he announced a 100% tariff on branded and patented pharmaceutical products, effective October 1, 2025. However, if a company begins construction—even demolition—of a manufacturing plant in the US, it will be exempt from this tariff. Trump stated in his Truth social post, "We want to increase pharmaceutical production in the US and strengthen the supply chain." However, experts believe this move could lead to a surge in drug prices for American consumers, while generic drugs have received relief.

Trump's tariff policies have been making headlines since taking office. Last week, the 50% tariff, followed by the announcement of tightening H-1B visas, created a stir. Now, this new bombshell on the pharmaceutical sector could prove challenging for exporting countries like India. India primarily supplies generic drugs to the US, which are exempt from these tariffs. However, concerns remain due to the presence of a small share in the branded segment. According to an Equity Master report, India's pharmaceutical exports reached $27.82 billion in 2024, with the US contributing approximately $8.72 billion—approximately 31% of the total. This sector has become the country's largest industrial export sector. How will Indian companies, already facing the brunt of 50% tariffs on the textile and auto sectors, cope with this new setback?

The pharma tariffs will directly impact Indian giants with a strong presence in the US market. While generic-focused companies will breathe a sigh of relief, the limited share of branded products could also increase costs. Let's take a look at five major companies most at risk from this policy:

1. Aurobindo Pharma: The Power of Generics, but Caution Required

Aurobindo Pharma, ranked among the world's top 10 generic pharmaceutical companies, generated 48% of its revenue from the US in FY2024. The company focuses on generic drugs, active pharmaceutical ingredients (APIs), injections, biosimilars, and vaccines, covering areas such as neuroscience, cardiovascular, and anti-retrovirals. Exporting to over 125 countries, the company derives over 70% of its revenue from overseas operations. The tariffs are primarily on branded products, so the direct impact will be minimal, but supply chain changes may be required. The company plans to expand its manufacturing capacity to 50 billion units annually. Recently, its Chinese plant was prepared for commercial production, which will begin generating revenue in 2026.

2. Piramal Pharma: Risk of U.S. Market Dependence

In FY2024, 41% of Piramal Pharma's revenue came from North America, where the company has significant investments. The company, which has a strong presence in the U.S. market for inhalation anesthesia products such as sevoflurane and isoflurane, has achieved over 70% market share in the intrathecal segment with Gablofen and Baclofen pre-filled syringes. Despite its focus on generics, significant losses could be incurred if the branded segment is affected. 84% of the company's total revenue comes from regulated markets (U.S., Europe, and Japan), so considering a U.S. plant could be considered quickly.

3. Gland Pharma: Queen of Injections, 54% Bet on the U.S.

Gland Pharma's revenue in FY2024 came from the U.S. market, which has been the main engine of the company's rapid growth. Sales of products like ketorolac tromethamine, rocuronium, enoxaparin sodium, and carboplatin have strengthened its position. The company, which manufactures a wide range of complex injections—anesthesia, anti-infective, cardio, oncology, and ophthalmology—may now shift to US production under tariff pressure. Despite total revenues exceeding ₹56 billion, this dependence has led to stock volatility.

4. Sun Pharma: India's number one, second-largest generic in the US

Sun Pharma, India's largest pharmaceutical company, expects to generate 32% of its revenue from the US in 2023-24. As the second-largest generic dermatology company in the US, it also leads in areas such as neurology, cardiology, gastroenterology, and oncology. Sun Pharma, which has a portfolio of generics, branded generics, specialty products, and APIs, has total revenues exceeding ₹498 billion. Generics are protected from tariffs, but the branded segment may be impacted. The company recently spent ₹9,000 crore on R&D, which will provide a strong foundation for the future.

5. Dr. Reddy's Lab: A hub for generics and biosimilars

The US accounts for 47% of Dr. Reddy's' generic business revenue. The company has received a license to sell an authorized generic version of Merck's simvastatin. The company specializes in generic, branded generic, biosimilar, and OTC drugs, focusing on gastroenterology, oncology, cardiovascular, dermatology, and diabetes. Total revenue in fiscal year 2024 was $3.35 billion, but the tariffs could impact the branded segment.

Trump's move is an attempt to encourage American pharmaceutical companies to domestically produce, but its impact on the global supply chain will be long-lasting. Indian pharmaceutical companies, known as the "Pharmacy of the World," are now strategizing to increase US investment or look at alternative markets. Economists estimate that these tariffs could increase US drug prices by 20%, while countries like India could face a 5-10% decline in exports. Is this a new chapter in the trade war? Time will tell, but Indian pharma must now be more cautious.