Anil Singhvi views Trump’s executive order to slash US drug prices as negative for Indian pharma

Even as the markets gained substantially on expected lines in Monday’s trade (May 12, 2025) after India-Pakistan agree a ceasefire, pharma pack emerged as the only laggard, with the sectoral gauge down as much as 1.6 per cent at around 10:30 am. Losses in the pharma pack came after the US President Donald Trump stated that he would sign an executive order to slash US drug prices.

Trump mentioned that he would slash US drug prices by 30-80 per cent, and that pharma prices will increase in other parts of the world. Nonetheless, he did not put to table how the aforesaid will be implemented.  

The move is detrimental for Indian pharma companies as they have high exposure to the US markets.

Post sharp losses, mirroring broader market gains, Nifty Pharma also turned positive at around 10:31 am, with tad gains of 0.06 per cent. 

Within the Nifty pharma pack, of the 20 index constituents, 13 traded with gains, while 6 counters traded with cuts, and one more traded unchanged. 

Asian pharma stocks also trade with caution

Asian pharma stocks particularly those with high US exposure faltered in trade today after the Trump comments. Japan’s pharma Chugai Pharmaceutica, Daiichi Sankyo and Takeda Pharmaceutical fell up to 7 per cent. Similarly,  South Korea’s Sk Biopharmaceuticals and Samsung Biologics fell up to 4 per cent, while Australian vaccine maker CSL fell by a tad.

Anil Singhvi view on Trump executive order

Anil Singhi on the development said US President Donald Trump will announce that pharma companies should reduce prices by 30-80 per cent. The news will serve as a big blow to pharma majors in the country, he added.