Trump’s pharma order spooks Indian drug makers; Anil Singhvi expects one stock to lead rebound

President Donald Trump signed an executive order to boost domestic drug manufacturing, ahead of planned tariffs on imported pharmaceuticals. The move aims to reduce reliance on countries like China and Europe, where production costs are lower.

In a recent segment on Zee Business, Managing Editor Anil Singhvi analyzed the impact of  Trump’s new executive order. The move could alter global dynamics and Singhvi pointed out how Indian pharma stocks might respond.

Nifty Pharma Reacts

Indian pharma shares opened on  a low after U.S. President Donald Trump signed an executive order to boost domestic drug production, triggering fears of export disruption. The Nifty Pharma index dropped 1.4 per cent, with Lupin and Aurobindo sliding over 3 per cent. The order directs the FDA to fast-track U.S.-made drug approvals and tighten oversight of foreign plants. Trump also hinted at upcoming tariffs on imported medicines, escalating concerns for top Indian exporters like Sun Pharma, Cipla, and Dr Reddy’s.

U.S. Shifts Focus to Domestic Manufacturing

Trump’s order seeks to expand pharmaceutical production within the U.S., speed up FDA approvals for American plants, and raise inspection fees for foreign manufacturing units. This policy direction signals a push toward greater self-sufficiency in the U.S. healthcare supply chain.
“Trump’s style is direct support domestic industry while making it more expensive for global competitors,” Singhvi highlighted.

Pressure on Indian Pharma, but All Is Not Negative

Companies like Dr. Reddy’s, Lupin, and Cipla, which rely heavily on U.S. exports, could face pressure in the short term due to potential regulatory burdens and increased costs. However, Singhvi emphasized that political sensitivity around drug prices in the U.S. could prevent Trump from imposing direct tariffs.
“Healthcare is one area where voters are deeply affected. No government wants to be blamed for rising medicine costs,” he explained.

Glenmark Emerges as a Stock to Watch

Despite the cautious outlook, Singhvi highlighted Glenmark as a company showing promise amid sector volatility. “If the pharma sector stabilizes or turns positive, Glenmark could lead the recovery. There’s some good news surrounding it,” he noted.

Market Sentiment to Drive Near-Term Moves

Singhvi advised investors to monitor sentiment and policy clarity closely. “The market is reacting more to expectations than fundamentals right now. Stay nimble, stay informed,” he concluded.
For full analysis and ongoing updates, tune in to Zee Business with Anil Singhvi.