Pharmaceutical equities faced renewed pressure as the prospect of steep US tariffs on generic medicines gained traction in market commentary.
The potential imposition of levies reaching 200% on imported off-patent drugs threatens to upend established supply chains, particularly for manufacturers reliant on the US market for a significant share of their revenue.
The threat targets the backbone of the global generic drug industry, with India’s pharmaceutical sector facing the most acute exposure.
According to analysis from the Global Trade Research Initiative (GTRI), such tariffs could significantly disrupt India’s largest export market, forcing a costly restructuring of production and distribution networks.
The uncertainty has prompted investors to reassess the risk premium embedded in pharma valuations, particularly for companies with high exposure to US generic imports.
Swiss pharmaceutical giant Sandoz is also directly in the crosshairs of the proposed measures.