Trump’s Drug Price Demand Sends Shockwaves Through Global Pharma, Jolts Indian Stock Market

Mumbai: Global pharmaceutical stocks took a major hit on Friday after former US President Donald Trump sent letters to 17 international drug companies, urging them to drastically cut prices in the United States. The unexpected move rattled investors worldwide, with Indian pharma stocks also feeling the tremors despite no Indian company receiving such communication.

The letter, which demanded that US drug prices align with those in other developed nations, triggered a 2.45% intra-day drop in the Nifty Pharma index — its third straight day of losses. Leading the decline were shares of Sun Pharma, which slumped 3.98%, followed by Aurobindo Pharma at 3.42%, and Granules India at 3.2%. Other firms like Gland Pharma, Cipla, and Lupin also recorded 2–3% dips.

Though Indian pharmaceutical exporters were not directly named in the letter, the broader industry sentiment soured on fears of increased pricing pressure in the US — India’s largest pharma export destination. Industry experts warned that if US pricing is forced to drop further, Indian companies selling low-cost generics could see shrinking margins, potentially making some shipments unviable.

Trump’s letters were reportedly sent to global majors like Pfizer, Eli Lilly, and Novo Nordisk. They outlined a 60-day window for drugmakers to offer “Most Favoured Nation” pricing — essentially matching or beating the lowest price offered in other advanced markets. He warned of strong regulatory action if firms failed to act, promising to use “every tool in our arsenal” to rein in what he called abusive pricing.

The former president’s stance was reinforced by White House Press Secretary Karoline Leavitt, who cited new data showing Americans pay more than three times as much as consumers elsewhere for brand-name medications.

This isn’t the first time Trump has taken aim at drug prices. Back in May, he had issued a similar warning, which Indian pharma companies had closely watched. Analysts then pointed out that any sweeping US price cuts could hurt the $30 billion Indian pharma export industry — especially since one-third of it is tied to the American market.

A notable clause in Trump’s latest push demands that companies sell specific drugs directly to patients at the same prices offered to insurers — a move seen as a direct challenge to long-standing pricing and distribution structures.

With the US market hanging in a delicate balance, Indian pharmaceutical companies are now assessing the potential fallout and preparing for heightened volatility in the weeks ahead.