Menu

Lupin

Global Ambitions: Sudarshan Pharma’s Strategic Expansion and Funding Drive

Pharma Stocks Decline Sharply Amid Fresh US Tariff Concerns

Pharma Stocks Decline Sharply Amid Fresh US Tariff Concerns

Indian pharmaceutical stocks experienced significant declines on June 17, 2025, following renewed concerns over potential tariff impositions by the United States. This unexpected development sparked widespread selling pressure across the sector, leading to sharp price corrections in both large-cap and mid-cap pharma companies.

Key Stocks Affected in the Pharma Sector

The biggest intraday decline was observed in Sigachi Industries, which fell by over 8% during the trading session before slightly recovering. Other mid-sized pharmaceutical firms like Shilpa Medicare, Suven Life Sciences, Wockhardt, and Eris Lifesciences also faced considerable selling pressure, with their share prices dropping between 3% and 5%.

Among the heavyweight stocks, Sun Pharmaceutical Industries Ltd saw its shares decline by nearly 3%, closing at approximately ₹1,641. Lupin Limited, another major pharma player, also suffered losses of around 3.3% by the end of the day. This broad-based sell-off pulled down the BSE Healthcare Index by around 1.8%, while the Nifty Pharma Index recorded a fall of close to 2%.

The Catalyst: US Tariff Threat Resurfaces

The primary trigger behind this sharp fall was a fresh warning from former US President Donald Trump, who indicated that new tariffs on pharmaceutical imports could be announced soon. Trump’s statement caused significant concern among investors, as Indian pharmaceutical companies rely heavily on the US market, which contributes approximately 30–40% of their revenues.

Any imposition of tariffs by the US could directly impact profit margins and sales volumes for Indian drug manufacturers, especially those engaged in the export of generic medicines. The fear of reduced competitiveness in the US market prompted traders to exit their positions quickly, leading to a sharp price correction across the board.

Regulatory Pressures Add to the Weakness

In addition to tariff concerns, regulatory challenges further weighed on the pharma sector. It was reported that Sun Pharma’s manufacturing plant in Gujarat came under scrutiny after receiving observations from the US Food and Drug Administration (FDA), sparking concerns about possible compliance challenges. This regulatory development played a role in the decline of Sun Pharma’s share price and further deepened the negative sentiment across the pharmaceutical sector.

Such regulatory warnings can have serious financial consequences, as they may delay product approvals and affect exports to the crucial US market. Investors remain cautious as regulatory inspections and outcomes have historically triggered volatility in pharmaceutical stocks.

Broader Market Sentiment Turns Cautious

The negative sentiment in the pharmaceutical sector also dragged down broader markets. That same day, the Sensex fell by around 213 points, and the Nifty 50 Index dropped by almost 93 points. Although the losses were concentrated in pharma stocks, the overall mood on Dalal Street turned cautious as traders weighed the potential implications of the US policy stance.

Market analysts believe that the uncertainty regarding upcoming tariff decisions may keep the pharma sector under pressure in the near term. The situation remains delicate as the next official policy announcement from the US administration is expected by July 9, 2025.

Expert Opinions on Market Direction

Several brokerage firms and market experts have expressed concerns about the sector’s short-term prospects. According to analysts at Bajaj Broking, the tariff threat could limit upside potential in pharma stocks despite their generally strong fundamentals. Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services, also advised caution, stating that investors may continue to book profits in pharmaceutical stocks until there is clarity on the US tariff policy.

While the long-term growth story for the Indian pharmaceutical industry remains intact, these immediate geopolitical and regulatory headwinds could weigh on stock performance in the coming weeks.

Investor Strategy: Cautious Yet Watchful

Given the current scenario, market participants are adopting a more selective and risk-managed approach to pharmaceutical investments. Traders are closely watching support levels and potential buying opportunities if the stocks correct further.

Investors with existing positions in pharma stocks may consider placing strict stop-loss orders to protect against additional downside risks. Experts also recommend focusing on companies with robust balance sheets, strong compliance track records, and diversified market exposure to minimize tariff-related risks.

Outlook Remains Mixed in the Short Term

While India’s pharmaceutical sector continues to enjoy global leadership in the generics space and remains a critical supplier to international markets, the combination of tariff uncertainties and regulatory challenges presents a tricky situation for investors.

The sector is expected to remain volatile until the US administration provides a clear policy direction regarding pharmaceutical imports. Until then, cautious optimism and disciplined investment strategies may be the best approach for navigating this turbulent phase.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The image added is for representation purposes only

UGRO Capital Acquires Profectus Capital in Ambitious ₹1,400 Crore Deal

Lupin Soars on USFDA Nod for Billion-Dollar Drug

Lupin Soars on USFDA Nod for Billion-Dollar Drug

Lupin Soars on USFDA Nod for Billion-Dollar Drug

 

 

Exclusive 180-day window fuels stock jump after Tolvaptan approval for kidney disease treatment.

Shares of the Mumbai-based pharmaceutical giant, Lupin Limited, experienced a significant surge, climbing nearly 3% on Thursday, April 24th. This positive market reaction followed the announcement that the company had secured a crucial approval from The USFDA granted approval for Lupin’s New Drug Application concerning Tolvaptan tablets, available in strengths of 15mg, 30mg, 45mg, 60mg, and 90mg.

Exclusive Opportunity in a Lucrative Market

This regulatory clearance is particularly significant for Lupin as it marks their position as the first generic manufacturer to receive approval for this specific drug. This “first-to-file” status grants Lupin a valuable 180-day period of exclusive marketing rights for generic Tolvaptan in the United States. Industry analysts anticipate that Lupin will effectively be the sole generic supplier of this medication for a substantial portion of the financial year 2026, providing a considerable competitive advantage.

Substantial Revenue Projections

Financial experts have already begun to assess the potential financial impact of this approval on Lupin’s performance. Preliminary projections indicate that Lupin may earn $150 million to $200 million this fiscal year from the launch of generic Tolvaptan. This influx of revenue is poised to significantly bolster the company’s financial results.

Strategic Manufacturing and Swift Market Entry

Lupin has announced that its Tolvaptan tablets will be produced at their state-of-the-art pharmaceutical facility in Nagpur, India. The company has also indicated its intention to expedite the launch of the product in the US market, aiming to capitalize on the 180-day exclusivity period as quickly as possible.

Bioequivalence to a Key Branded Drug

The approved Tolvaptan tablet developed by Lupin is a bioequivalent version of Jynarque tablets, which are marketed by Otsuka Pharmaceutical Company. Bioequivalence signifies that Lupin’s generic version is designed to have the same therapeutic effect as the original branded drug, ensuring patients have access to a comparable treatment option.

Addressing a Critical Medical Need

Tolvaptan is indicated for use in adult patients who are at risk of experiencing a rapid decline in kidney function due to autosomal dominant polycystic kidney disease (ADPKD). The development of many kidney cysts is a hallmark of ADPKD, a hereditary condition that can ultimately result in renal failure. Tolvaptan plays a crucial role in slowing down this progression, offering a vital treatment option for affected individuals.

A Significant Market Opportunity

In the US, there is a sizable market for tolvaptan. According to data from December 31, 2024, the estimated annual sales of Tolvaptan in the US reached an impressive $1.467 billion. This figure underscores the significant commercial potential that Lupin can now tap into with its generic version.

Boosting Earnings and Offsetting Losses

Analysts predict that the introduction of generic Tolvaptan (Tolvaptan) could contribute over 25% to Lupin’s overall earnings in the current fiscal year. Additionally, in the fiscal year 2026, it is anticipated to be the main factor driving the drugmaker’s financial success. This new product launch is also strategically important as it will help to counterbalance any potential revenue decline anticipated from the generic version of Mirabegron (gMirabegron) in FY26.

Revised Financial Outlook

Following this significant USFDA approval, financial institutions are revising their forecasts for Lupin. Axis Capital, for instance, has adjusted its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) and Profit After Tax (PAT) estimates for Lupin in FY26 upwards by 8% and 10%, respectively. These revisions directly reflect the anticipated positive impact of the tolvaptan launch on the company’s profitability.

Market Reaction and Investor Confidence

The positive market response was evident in the nearly 3% gain in Lupin’s share price on the day of the announcement. The stock reached an intraday high of ₹2149.5 apiece, demonstrating strong investor confidence in the company’s prospects following this regulatory success. Even after some fluctuation, the stock continued to trade significantly higher, indicating sustained positive sentiment.

Final Thoughts

Lupin’s recent USFDA approval for its generic Tolvaptan tablets marks a significant milestone for the company. Securing the first-to-file status and the accompanying 180-day exclusivity period positions Lupin for substantial revenue generation in a nearly $1.5 billion market. Analysts foresee this launch as a major catalyst for the company’s earnings growth in the coming fiscal years, effectively offsetting anticipated losses from other generic products. The market’s positive reaction, with a notable surge in Lupin’s share price, underscores the significance of this regulatory achievement and its potential to drive the company’s future financial performance. This strategic win not only strengthens Lupin’s presence in the US generic market but also highlights its capabilities in navigating the complex regulatory landscape and bringing crucial medications to patients.

 

 

 

 

 

 

The image added is for representation purposes only

Analysts Weigh In: KFin Technologies’ Ascent Acquisition Could Drive Future Growth

IFL Enterprises Surges With 13x Revenue

And then there were none....story of small and mid caps!

The weak sentiments on Dalal Street resulted in another day in the red. The weak sentiments are fuelled by numerous issues like liquidity crisis in the NBFC sector, demand slowdown...
Lupin Soars on USFDA Nod for Billion-Dollar Drug

Q2FY19 Results, Lupin Ltd. posted Rs 266 crores net profit

Lupin Ltd is a multinational pharmaceutical company, incorporated in the year 1968. It is the eighth-largest generic pharmaceutical company in terms of revenue globally. The company’s key business areas are...