Latest news with #AurobindoPharma
Hans India
4 hours ago
- Business
- Hans India
Trump asks 17 non-Indian drug majors to cut prices in US; Nifty pharma dips
Mumbai: A letter from US President Donald Trump has asked 17 global drug giants to cut their prices in the country, sparking severe losses for them, as its impact hit the Indian stock market too. The letter urged that these businesses cut US drug pricing to match prices in other developed markets. Though no Indian pharmaceutical companies received Trump's letters, the Nifty Pharma index reacted sharply, falling 2.45 per cent during the intra-day trade on Friday. The index fell for the third day in a row. Sun Pharmaceutical Industries Ltd fell 3.98 per cent. Aurobindo Pharma lost 3.42 per cent and Granules India lost 3.2 per cent. Gland Pharma, Cipla, and Lupin fell 2 to 3 per cent. The US President wrote to 17 of the world's major pharmaceutical corporations, pressing them to lower drug prices immediately and give assurance that future drugs will be priced in line with other countries. The letters were sent to Eli Lilly, Novo Nordisk, Pfizer, and others, seeking 'Most Favoured Nation' (MFN) pricing for US within 60 days. White House Press Secretary Karoline Leavitt said recent data showed that Americans paid more than three times more for brand-name drugs than other developed nations. Trump had earlier made a similar announcement on May 12, asking pharma companies to cut prices in US. Industry sources in India had then said Trump's proposal might hurt Indian exporters of branded generics to the US, given generic drugs are already sold at low prices. If prices are cut further, it will make shipping unviable, they said. A third of Indian pharmaceutical exports of $30 billion annually, reach the US market. Trump gave drug companies 60 days to voluntarily comply with the new pricing diktat in the letter, failing which, he said, the US would use 'every tool in our arsenal' to protect Americans from 'continued abusive drug pricing' practices. Trump's letter required companies to sell certain drugs directly to patients at prices at which they are offered to third-party insurers.
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Business Standard
6 hours ago
- Business
- Business Standard
Tariff worries, Sun Pharma Q1 miss: Why are pharma stocks falling today?
Pharma stocks in focus: The Nifty Pharma index crashed nearly 3 per cent on Friday to hit an intraday low of 22,122.65 levels amid concerns around 25 per cent trade tariffs announced by US President Donald Trump on Indian imports. Last checked, the index was quoting 2.08 per cent down at 22,297.60 levels. Eighteen of the 20 index constituents were trading lower, dragged by Sun Pharma, Aurobindo Pharma, Cipla, Lupin, Alkem, Divi's Laboratories, Dr Reddy's Labs, Ajanta Pharmaceuticals, Zydus Lifesciences, Granules Pharma, JB Chemicals & Pharmaceuticals, Biocon and Torrent Pharma, down in the range of 1 to 5 per cent. On Thursday, the index settled 1.3 per cent lower at 22,771.05 levels, after hitting an intraday low of 22,701.85. Here's why pharma stocks are falling today: The sector came under pressure after President Trump announced a 25 per cent tariff rate for Indian exports to the US on Wednesday. Notably, the US relies heavily on India for its pharmaceutical needs, with around 50 per cent of generic drugs sourced from India. However, analysts suggest that due to the structural dependence on Indian pharma and the cost sensitivity of the US healthcare system, the likelihood of material near-term tariffs on pharma is low. Maitri Sheth, equity research analyst for the pharmaceutical sector at Choice Broking, stated that drug formulations and Active Pharmaceutical Ingredients (APIs) are currently excluded from this tariff, consistent with the April 2025 reciprocal tariff framework, which explicitly exempted pharmaceuticals. "We flag the ongoing Section 232 investigation into pharma imports by the US as a medium-term overhang, with the potential for pharma-specific tariffs to be announced in the coming weeks or months. In the absence of clarity on the potential rate and scope of such tariffs, it remains difficult to quantify the impact on Indian pharma players at this stage," she added. "From our initial management interactions, we understand that larger players with manufacturing facilities in the US are likely to remain broadly insulated, while others anticipate a limited impact, with plans to pass on incremental costs to customers where feasible," said Sheth. Sun Pharma Q1 results Shares of Sun Pharma fell 4.6 per cent to hit an intraday low of ₹1,626.5 on the NSE after the drug maker reported a 20 per cent year-on-year decline in consolidated net profit to ₹2,278 crore for the June 2025 quarter (Q1FY26) compared to ₹2,835 crore in the year-ago period. The stock was a top laggard on the Nifty Pharma index. However, consolidated revenue of the company rose over 9 per cent to ₹13,851 crore in the reported quarter from ₹12,653 crore in the June 2024 quarter. The strong growth was driven by strong growth across markets, including India, the US, and the Rest of the World (ROW) regions. According to analysts at Motilal Oswal Financial Services, Sun Pharma's profit was a miss due to lower other income and a higher tax rate. The brokerage reduced its earnings estimates by 5/4 per cent for FY26/FY27, factoring in higher operational expenditure for the branded business and a higher tax rate. "We value Sun Pharma at 32x 12M forward earnings to arrive at a target of ₹1,960," it said. "We await clarity on the US tariff implications on SUNP's innovative medicines portfolio," the brokerage added.
Time of India
12 hours ago
- Business
- Time of India
Amid Trump tariff fears, Aurobindo strikes biggest deal; To acquire Lannett for Rs 2185 crore
Hyderabad: Amid rising fears of US President Donald Trump imposing tariffs on Indian pharma imports, Aurobindo Pharma is making its largest acquisition with a 100% stake in Lannett Company from US-based complex generics manufacturer Lannett Seller Holdco Inc for a total enterprise value of $250 million (approx. 2,185 crore) on a cash-free, debt-free basis. The acquisition, to be done through Aurobindo's wholly-owned US subsidiary Aurobindo Pharma USA Inc, will enable the company to expand its manufacturing footprint in the US, Aurobindo Pharma said in a regulatory filing. The Hyderabad-based company said the transaction aligns with its strategic objective to expand its US manufacturing footprint. Lannett has a 4.24 lakh sq ft cGMP (current good manufacturing practices) facility at Seymour in Indiana with a capacity to make around 3.6 billion tablets per annum. You Can Also Check: Hyderabad AQI | Weather in Hyderabad | Bank Holidays in Hyderabad | Public Holidays in Hyderabad The plant has the capability to manufacture not just tablets but multiple dosage forms, including capsules, liquids, and powders. Aurobindo said Lannett's US-based facility has significant excess capacity and offers potential for further expansion. Lannett's plant has a strong regulatory and DEA (Drug Enforcement Administration) compliance track record and has built strong expertise in non-opioid controlled substances, mainly in ADHD (attention-deficit, hyperactivity disorder) therapeutics, as well as generic liquids. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Gold Is Surging in 2025 — Smart Traders Are Already In IC Markets Learn More Undo Apart from giving a manufacturing facility in the US, the deal will also give Aurobindo access to a complementary portfolio of profitable products as well as a growing contract development and manufacturing organisation business, it added. "The acquired product portfolio is primarily focused on non-opioid controlled substances, particularly in ADHD therapeutics in which Aurobindo currently has a limited presence. This acquisition strengthens Aurobindo's ability to serve the US generics space and provides strategic diversification into a specialised high-value therapeutic category," Aurobindo Pharma said. The transaction is expected to be completed in 8-12 months and is subject to US Federal Trade Commission approval in addition to other statutory and govt approvals. Though Aurobindo is acquiring Lannett Company Inc, the company will undergo a re-organisation to become Lannett Company LLC before Aurobindo acquires it. Lannett Company clocked a turnover of $306 million (approx. Rs 2674 crore) in the financial year 2024-25. The Lannett acquisition is Aurobindo Pharma's largest buy after its plan to acquire Sandoz's US dermatology and generic oral solids businesses for $1 billion in 2018 fizzled out because they could not secure approval from the US FTC in a timely manner.
Business Upturn
a day ago
- Business
- Business Upturn
CLSA on pharma: Trump's 25% tariff adds uncertainty; firms may hike prices if generics included
By News Desk Published on July 31, 2025, 08:03 IST CLSA has flagged heightened uncertainty for Indian pharmaceutical companies following former U.S. President Donald Trump's announcement of a 25% tariff on all Indian goods exported to the U.S., effective August 1. While the industry remains hopeful that pharmaceutical products—particularly generic drugs—will be exempt, clarity is still awaited due to the ongoing Section 232 investigation. According to CLSA, most pharma companies are operating under the assumption that generics will not be covered under the new tariff slab. However, in the event that these products are not excluded, companies intend to offset the impact by passing on the additional costs through price hikes. The brokerage highlighted key pharma stocks with high exposure to the U.S. market: Aurobindo Pharma (48% of revenues from U.S.) Zydus Lifesciences (47%) Dr Reddy's Laboratories (46%) Lupin (38%) Sun Pharma (33%) Cipla (30%) CLSA's analysis underscores the sector's vulnerability to U.S. trade policy shifts, even as firms prepare strategic responses to mitigate potential disruptions. Disclaimer: The views expressed in this article are based on brokerage reports and do not constitute investment advice. Please consult your financial advisor before making any investment decisions. Ahmedabad Plane Crash News desk at
The Hindu
15-07-2025
- Health
- The Hindu
Aurobindo, Cipla, Viatris to make, market long-acting injectable HIV drug
Generic drugmakers Aurobindo Pharma, Cipla and Viatris will develop, manufacture and supply long-acting injectable cabotegravir (CAB LA) for HIV treatment in 133 countries. This follows ViiV Healthcare, a company focused on HIV medicines and majority owned by GSK with Pfizer and Shionogi as shareholders, and Medicines Patent Pool (MPP) extending their voluntary licensing agreement to enable access to long-acting injectable HIV treatment. It builds on the voluntary license for CAB LA for HIV pre-exposure prophylaxis (PrEP). The announcement, on extending their agreement, comes in the wake of an updated guidance from World Health Organization (WHO) recommending long-acting injectable cabotegravir + rilpivirine as an HIV treatment option. Existing licensees Aurobindo, Cipla and Viatris will consequently be able to develop, manufacture and supply generic versions of CAB LA, for use in combination with long-acting rilpivirine, for the treatment of HIV-1 infection in adults and adolescents weighing at least 35kg subject to required regulatory approvals being obtained, Aurobindo Pharma said on Tuesday. Vice chairman and MD of Aurobindo Pharma K. Nithyananda Reddy said the company remains committed to leveraging its global supply capabilities to make the vital combination long-acting injection therapy widely available and affordable. The consideration by ViiV and MPP to include the private market in royalty-bearing countries is a critical step toward expanding access across both public and private sectors, he said.
