The reaction of some of India's biggest pharma stocks—from Sun Pharma to Dr Reddy's and Cipla—to Trump tariff on pharma is unfounded as it targets branded drugs and not generics that India largely exports to the US.
“The near-term impact of the tariffs is likely to be limited, as India mainly exports generics,” ICICI Securities’ research analyst Pankaj Pandey said in a report. “That being said, uncertainty still remains whether complex generics and biosimilars will come under the tariff embargo in the future.”
Moreover, while the United States is by far the biggest export market for our drugmakers, India accounts for barely 5% of global pharma exports to the US.
India’s pharma exports to the US stood at $13.1 billion in 2024, accounting for 5.3% of total drugs flowing into the world’s largest economy, according to US Census Bureau data cited by Bloomberg. That’s roughly a third of India’s total pharma exports in Fiscal 2025.
Ireland was the top pharma exporter to the US with 30% share, followed by Switzerland at 8.8% and Switzerland at 7.8%. India barely made it to Top 5.
That’s because India makes and exports low-cost generic drugs to the US and not branded, patented drugs, which have come under 100% US tariffs on pharma.
{{/usCountry}}That’s because India makes and exports low-cost generic drugs to the US and not branded, patented drugs, which have come under 100% US tariffs on pharma.
{{/usCountry}}In FY25, the value of India’s generic exports to the US stood at $10.5 billion, according to Pharmexcil, or 78% of total pharma exports. Most Indian pharma firms have manufacturing plants and subsidiaries in the US, which puts them out of the purview of the punitive move.
Starting 1 October 2025, the US will be imposing a 100% tariff on branded and patented drugs, unless a company is building their manufacturing plant in America, US President Donald Trump posted on Truth Social. “There will, therefore, be no tariff on these pharmaceutical products if construction has started.”
Against that backdrop, here’s a look at the US operations of some of India’s drugmakers—from Sun Pharma to Cipla and Dr. Reddy’s.
Sun Pharmaceutical Industries Ltd.
The company founded by Dilip Shanghvi has a large generics and specialty presence in the US. It has a listed subsidiary in the US in Taro Pharmaceuticals, as well as a manufacturing plant by way of another subsidiary Ohm Laboratories, which makes over-the-counter drugs.
At $1.9 billion, the US accounted for 31% of Sun Pharma’s consolidated revenue in FY25 even as total global revenue stood at $5.8 billion, according to the company’s annual report.
Dr. Reddy’s Laboratories Ltd.
The Hyderabad-based company has a large generics portfolio in North America in the dermatology segment. It operates a facility in Middleburgh, New York, that makes active pharma ingredients. Another plant in Shreveport, Louisiana, was shut down in March 2025.
The company is open to expansion in the US, including through acquisitions, its CEO Erez Israeli had told The Hindu earlier this year, as a way to sidestep Trump tariffs.
At $1.73 billion, Dr. Reddy’s US business accounted for 45% of the consolidated revenue ($3.8 billion) in the fiscal ended 31 March 2025.
Cipla Ltd.
The Mumbai-based pharma company has a well-entrenched US subsidiary Cipla USA, with manufacturing operations controlled by unit InvaGen Pharmaceuticals in Hauppauge, New York, and Fall River, Massachusetts. Its portfolio includes respiratory/inhaler generics and branded inhalation products and some oncology drugs.
At $934 million, the US business accounted for 29% of Cipla’s consolidated revenue of $3.2 billion in the fiscal through 31 March 2025.
“This is branded drugs—it doesn’t affect generics that China and India supplies,” Ken Peng, head of Asia Investment Strategy at Citi Wealth, told Reuters. “The regions that export the most branded, finished product to the US are Europe, Switzerland and maybe a little bit in Japan.”