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Time of India
13-05-2025
- Business
- Time of India
Pharma Cos Slip on US Move to Cut Prices
HighlightsSeveral pharmaceutical shares, including Sun Pharmaceuticals and Ajanta Pharma, underperformed on a day when the broader market saw a nearly 4 percent rally, following President Donald Trump's announcement of plans to cut US prescription drug prices by 30 to 80 percent. The Nifty Pharma Index, despite a 0.2 percent increase on the day, is down 10 percent year-to-date, contrasting with a 5 percent gain in the benchmark Nifty Index. Analysts suggest that while the proposed executive order primarily affects the branded drugs segment, which comprises 90 percent of the US market, Indian pharmaceutical companies mainly operate in the generics market, thus facing limited risks from these changes. Several pharmaceutical shares underperformed on Monday despite a strong broad market rally, after US President Donald Trump announced plans to sign an executive order slashing prescription drug prices in the US to match those in favoured nations, implying cuts of 30 per cent to 80 per cent. Sun Pharmaceuticals fell 3.2 per cent, Ajanta Pharma slipped 2.3 per cent, and Glenmark and Divi's Labs lost over 1 per cent each. Biocon dipped 0.5 per cent. The Nifty Pharma Index ended 0.2 per cent higher Monday after tumbling almost 2.4 per cent earlier in the day in response to Trump's remarks. The Sensex and Nifty jumped nearly 4 per cent—posting their biggest single-day gains in four years. Of the 20 stocks in Nifty Pharma, 13 gained and seven declined. 'The order implies a 30-80 per cent expected cut to align US drug prices with other regulated markets. But such cuts are commercially unviable for pharma firms, especially those with low-double-digit margins,' said Nikhil Ranka, CIO at Nuvama Alternates. 'That's why companies like Sun Pharma, which derives around 40 per cent revenues from the US, saw declines.' Ranka said most pharma stocks rebounded after an initial knee-jerk reaction, as the proposed changes are not expected to be immediately enforceable or impactful. 'Pharma stocks could resume their uptrend in the coming sessions,' he said. Year-to-date, the Nifty Pharma Index is down 10 per cent, compared with a 5 per cent gain in the benchmark Nifty. Bhavesh Gandhi, lead analyst for pharma and healthcare at YES Securities, said the proposed policy primarily targets the branded drugs segment, which accounts for 90 per cent of the US market. Indian companies cater mostly to the remaining 10 per cent — the generics space — where prices are already low. 'Sun Pharma, with some exposure to the branded segment, may face limited risk. But for now, the reaction is largely sentimental, and the real impact will depend on how earnings shape up,' Gandhi said.
Economic Times
13-05-2025
- Business
- Economic Times
Pharma stocks decline amid Trump's prescription drug price cuts announcement
"Sun Pharma, with some exposure to the branded segment, may face limited risk. But for now, the reaction is largely sentimental, and the real impact will depend on how earnings shape up," Gandhi said. Synopsis The Nifty Pharma Index ended 0.2% higher Monday after tumbling almost 2.4% earlier in the day in response to Trump's remarks. The Sensex and Nifty jumped nearly 4%-posting their biggest single-day gains in four years. Of the 20 stocks in Nifty Pharma, 13 gained and seven declined. Mumbai: Several pharmaceutical shares underperformed on Monday despite a strong broad market rally, after US President Donald Trump announced plans to sign an executive order slashing prescription drug prices in the US to match those in favoured nations, implying cuts of 30% to 80%. ADVERTISEMENT Sun Pharmaceuticals fell 3.2%, Ajanta Pharma slipped 2.3%, and Glenmark and Divi's Labs lost over 1% each. Biocon dipped 0.5%. The Nifty Pharma Index ended 0.2% higher Monday after tumbling almost 2.4% earlier in the day in response to Trump's remarks. The Sensex and Nifty jumped nearly 4%-posting their biggest single-day gains in four years. Of the 20 stocks in Nifty Pharma, 13 gained and seven declined. "The order implies a 30-80% expected cut to align US drug prices with other regulated markets. But such cuts are commercially unviable for pharma firms, especially those with low-double-digit margins," said Nikhil Ranka, CIO at Nuvama Alternates. "That's why companies like Sun Pharma, which derives around 40% revenues from the US, saw declines."Ranka said most pharma stocks rebounded after an initial knee-jerk reaction, as the proposed changes are not expected to be immediately enforceable or impactful. "Pharma stocks could resume their uptrend in the coming sessions," he the Nifty Pharma Index is down 10%, compared with a 5% gain in the benchmark Nifty. ADVERTISEMENT Bhavesh Gandhi, lead analyst for pharma and healthcare at YES Securities, said the proposed policy primarily targets the branded drugs segment, which accounts for 90% of the US market. Indian companies cater mostly to the remaining 10% - the generics space - where prices are already low."Sun Pharma, with some exposure to the branded segment, may face limited risk. But for now, the reaction is largely sentimental, and the real impact will depend on how earnings shape up," Gandhi said. ADVERTISEMENT India Ratings and Research said Trump's executive order to reduce the prices of prescription drugs in the US, once implemented, will have a limited near-term impact on the Indian pharma companies, but it may have a bearing on their long-term capital allocation strategies. Most Indian companies operate on thin margins in the generic drugs segment, which limits scope for further price reductions. The proposed cuts are more likely to target the branded drugs segment, said analysts. 'Volumes may remain stable, but lower prices could squeeze margins and weigh on share prices,' said Dharmesh Kant, head of research at Cholamandalam Securities. He expects firms such as Sun Pharma, Aurobindo Pharma, and Cipla to be affected, though the extent of the impact is still uncertain. (You can now subscribe to our ETMarkets WhatsApp channel) Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Cyient shares fall over 9% after Q4 profit declines, core business underperforms Cyient shares fall over 9% after Q4 profit declines, core business underperforms L&T Technology Services shares slide 7% after Q4 profit dips L&T Technology Services shares slide 7% after Q4 profit dips Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? SEBI warns of securities market frauds via YouTube, Facebook, X and more SEBI warns of securities market frauds via YouTube, Facebook, X and more API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders Security, transparency, and innovation: What sets Pi42 apart in crypto trading Security, transparency, and innovation: What sets Pi42 apart in crypto trading Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains The rise of Crypto Futures in India: Leverage, tax efficiency, and market maturity, Avinash Shekhar of Pi42 explains The rise of Crypto Futures in India: Leverage, tax efficiency, and market maturity, Avinash Shekhar of Pi42 explains How Pi42 is simplifying crypto trading: CTO Satish Mishra on integrating technical & fundamental insights NEXT STORY
Time of India
13-05-2025
- Business
- Time of India
Pharmaceutical shares decline: Pharma stocks decline amid Trump's prescription drug price cuts announcement
ADVERTISEMENT ADVERTISEMENT Mumbai: Several pharmaceutical shares underperformed on Monday despite a strong broad market rally, after US President Donald Trump announced plans to sign an executive order slashing prescription drug prices in the US to match those in favoured nations, implying cuts of 30% to 80%.Sun Pharmaceuticals fell 3.2%, Ajanta Pharma slipped 2.3%, and Glenmark and Divi's Labs lost over 1% each. Biocon dipped 0.5%.The Nifty Pharma Index ended 0.2% higher Monday after tumbling almost 2.4% earlier in the day in response to Trump's remarks. The Sensex and Nifty jumped nearly 4%-posting their biggest single-day gains in four years. Of the 20 stocks in Nifty Pharma, 13 gained and seven declined."The order implies a 30-80% expected cut to align US drug prices with other regulated markets. But such cuts are commercially unviable for pharma firms, especially those with low-double-digit margins," said Nikhil Ranka, CIO at Nuvama Alternates. "That's why companies like Sun Pharma, which derives around 40% revenues from the US, saw declines."Ranka said most pharma stocks rebounded after an initial knee-jerk reaction, as the proposed changes are not expected to be immediately enforceable or impactful. "Pharma stocks could resume their uptrend in the coming sessions," he the Nifty Pharma Index is down 10%, compared with a 5% gain in the benchmark Gandhi, lead analyst for pharma and healthcare at YES Securities, said the proposed policy primarily targets the branded drugs segment, which accounts for 90% of the US market. Indian companies cater mostly to the remaining 10% - the generics space - where prices are already low."Sun Pharma, with some exposure to the branded segment, may face limited risk. But for now, the reaction is largely sentimental, and the real impact will depend on how earnings shape up," Gandhi Ratings and Research said Trump's executive order to reduce the prices of prescription drugs in the US, once implemented, will have a limited near-term impact on the Indian pharma companies, but it may have a bearing on their long-term capital allocation strategies. Most Indian companies operate on thin margins in the generic drugs segment, which limits scope for further price reductions. The proposed cuts are more likely to target the branded drugs segment, said analysts.'Volumes may remain stable, but lower prices could squeeze margins and weigh on share prices,' said Dharmesh Kant, head of research at Cholamandalam Securities. He expects firms such as Sun Pharma, Aurobindo Pharma, and Cipla to be affected, though the extent of the impact is still uncertain.
Time of India
13-05-2025
- Business
- Time of India
Pharma stocks decline amid Trump's prescription drug price cuts announcement
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Mumbai: Several pharmaceutical shares underperformed on Monday despite a strong broad market rally, after US President Donald Trump announced plans to sign an executive order slashing prescription drug prices in the US to match those in favoured nations, implying cuts of 30% to 80%.Sun Pharmaceuticals fell 3.2%, Ajanta Pharma slipped 2.3%, and Glenmark and Divi's Labs lost over 1% each. Biocon dipped 0.5%.The Nifty Pharma Index ended 0.2% higher Monday after tumbling almost 2.4% earlier in the day in response to Trump's remarks. The Sensex and Nifty jumped nearly 4%-posting their biggest single-day gains in four years. Of the 20 stocks in Nifty Pharma, 13 gained and seven declined."The order implies a 30-80% expected cut to align US drug prices with other regulated markets. But such cuts are commercially unviable for pharma firms, especially those with low-double-digit margins," said Nikhil Ranka, CIO at Nuvama Alternates. "That's why companies like Sun Pharma, which derives around 40% revenues from the US, saw declines."Ranka said most pharma stocks rebounded after an initial knee-jerk reaction, as the proposed changes are not expected to be immediately enforceable or impactful. "Pharma stocks could resume their uptrend in the coming sessions," he the Nifty Pharma Index is down 10%, compared with a 5% gain in the benchmark Gandhi, lead analyst for pharma and healthcare at YES Securities, said the proposed policy primarily targets the branded drugs segment, which accounts for 90% of the US market. Indian companies cater mostly to the remaining 10% - the generics space - where prices are already low."Sun Pharma, with some exposure to the branded segment, may face limited risk. But for now, the reaction is largely sentimental, and the real impact will depend on how earnings shape up," Gandhi Ratings and Research said Trump's executive order to reduce the prices of prescription drugs in the US, once implemented, will have a limited near-term impact on the Indian pharma companies, but it may have a bearing on their long-term capital allocation strategies. Most Indian companies operate on thin margins in the generic drugs segment, which limits scope for further price reductions. The proposed cuts are more likely to target the branded drugs segment, said analysts.'Volumes may remain stable, but lower prices could squeeze margins and weigh on share prices,' said Dharmesh Kant, head of research at Cholamandalam Securities. He expects firms such as Sun Pharma, Aurobindo Pharma, and Cipla to be affected, though the extent of the impact is still uncertain.
Mint
12-05-2025
- Business
- Mint
Nifty Pharma Index cracks 2% as Trump proposes drug price cut: Sun Pharma dips 5%
Ujjval Jauhari Published 12 May 2025, 09:37 AM IST Stock Market today: Nifty Pharma Index cracks Stock Market today: Nifty Pharma Index cracked more than 2% in the morning trades on Monday as Trump indicated his plans to cut drug prices in the US by 30-80%. Sun Pharma share price led the fall declining more than 5%
