Jefferies sees Indian pharma largely unscathed by US tariffs

If the US levies reciprocal tariffs on Indian pharma imports, it will "at best" be 10%, says Jefferies

Adds, Indian pharma companies will aim to pass on tariff increases to consumers

Indian pharma stocks .NIPHARM flat on the day

Brokerage believes generic pharma industry, a significant contributor to lower drug costs in the U.S., may be spared as statements from U.S. President Donald Trump indicate more concern around Ireland and China-based manufacturing facilities

Says, contract drugmakers (CDMO) and contract research organisations are expected to be immune to tariffs' impact due to their business models

However, Indian generic drugmakers such as Zydus Lifesciences ZYDU.NS (45% sales from US), Dr Reddy's REDY.NS (43% sales from US) are at a higher risk of being hurt by tariffs, if imposed, due to stiff competition - Jefferies

Setting up facilities in the U.S. and obtaining regulatory approvals is a long process that requires heavy capex; current generic pricing does not make such projects viable - Jefferies

NIPHARM down ~10% so far this year vs benchmark Nifty 50's .NSEI 0.5% decline