Pharma Stocks Slide: Sun Pharma, Biocon, Cipla Share Price Among Top Losers

Market Performance

The Nifty Pharma Index witnessed a sharp correction in Monday's early trade, sliding over 2% amid renewed concerns over US drug pricing.

• The index opened at 20,949.70
• It dropped to an intraday low of 20,576.05
• This marked a decline of more than 2% from the previous close of 21,071.75

Main News: US Drug Price Cuts Shake Indian Pharma Stocks

Investor sentiment took a hit after US President Donald Trump announced an executive order to slash prescription drug prices by 30% to 80%.

Since Indian pharmaceutical giants like Sun Pharma, Biocon, Aurobindo Pharma, Lupin, Divis Laboratories, Zydus Lifesciences, and Cipla have considerable revenue exposure to the US market, the move triggered a broad-based selloff.

Company-wise Breakdown

Sun Pharma Share Price

• Fell more than 5% during morning trade
• The stock led the downfall of the Nifty Pharma Index
• Known for its portfolio of specialty drugs targeted at the US market
• Key drugs: Odomzo, Cequa, Ilumya, Winlevi, Absorica LD, and Levulan

Biocon, Aurobindo Pharma, Lupin, Divis Laboratories

• Each of these stocks declined over 2%
• They hold strong positions in the generic drug export market, particularly in the US.

Zydus Lifesciences, Cipla Share Price

• Also faced selling pressure due to U.S.-centric earnings risks
• Cipla's share price and Zydus Lifesciences remained among the notable losers

Summary

The proposed US drug price cuts have spooked investors, causing a steep fall in the Nifty Pharma Index and dragging down major pharmaceutical stocks including Sun Pharma, Biocon, Cipla, Aurobindo Pharma, Lupin, Divis Laboratories, and Zydus Lifesciences.

With the US being the largest market for Indian drugmakers, any regulation to lower drug prices directly affects these companies' profit margins, leading to immediate adverse market reactions.