Nifty Pharma Index Drops 3%; Natco, Glenmark, Lupin, Laurus Fall Up to 10%

Pharma stocks saw a sharp decline on Friday, with the Nifty Pharma index falling 3% on the NSE after US President Donald Trump announced new reciprocal tariffs for trade partners.

Shares of Natco Pharma, Laurus Labs, Lupin, Glenmark Pharma, Granules India, Aurobindo Pharma, and Mankind Pharma dropped 4-10% in intraday trade.

At 11:26 AM, the Nifty Pharma index was the worst-performing sectoral index, down 3%, compared to a 0.67% decline in the Nifty 50. So far in 2025, the pharma index has fallen 11%, while the Nifty 50 has dropped 3.7%.

Impact of Trump’s Trade Policies

President Trump ordered his administration to consider reciprocal tariffs, potentially leading to a broader trade battle. 

During Trump’s first term, Indian pharma stocks struggled due to multiple challenges:

• US supply chain consolidation
• Regulatory issues from the FDA
• Limited product approvals
• Price controls and FDC bans in India

While these problems weren’t caused by Trump directly, his focus on US manufacturing, tariff hikes, and drug cost reduction impacted pharma stocks.

Natco Pharma Slumps 11% on Weak Q3 Results

Natco Pharma share price fell 11% to ₹872.65, continuing its 29% decline over 2 days after weak Q3FY25 results.

• Q3 profit dropped 37.8% YoY to ₹132.4 crore
• Sequentially, profit fell 80% from ₹676.5 crore in Q2FY25
• Revenue declined 18% YoY and 54.6% QoQ to ₹651 crore
• EBITDA margin shrank to 33% from 38.3% in Q3FY24 and 60.5% in Q2FY25

Revenue from export formulations dropped 52.8% YoY and 76.4% QoQ to ₹285.8 crore. Natco remains vulnerable to US market conditions and currency fluctuations.

Concord Biotech Plunges 16% on Flat Revenue

Concord Biotech share price tumbled 16% to ₹1,777.70 after reporting weak Q3FY25 earnings:

• Profit fell 2% YoY to ₹75.92 crore
• Revenue remained flat at ₹244.22 crore vs. ₹240.80 crore in Q3FY24
• EBITDA margin dropped to 40.1% from 44%

The company said revenue was affected by customer procurement patterns and delayed orders. However, it expects growth in its API and formulation businesses due to new products, customer additions, and increased market share.

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