New Delhi: The pharma sector stocks listed in the Indian stock market gained on May 13, 2025 after US President Donald Trump stated that the US government is reducing prescription drug prices by 59 per cent. “DRUG PRICES TO BE CUT BY 59%, PLUS! Gasoline, Energy, Groceries, and all other costs, DOWN. NO INFLATION!!! LOVE, DJT,” posted Trump in his post on Truth Social.
It is being said that foreign pharma companies could build up pressure on India to increase the prices of drugs in India and other developing markets after Trump signs a new executive order which would result in drug costs getting cheaper in the US.
At present, the prices of branded medicines in the US are 422 percent to 504 percent expensive than in other countries, while generic medicines are only 67 percent more expensive. The executive order of the Trump administration will only affect branded medicines, while generic medicines will not be affected. The US government will also inform the pharmaceutical companies on which medicines this new price will be applicable.
HDFC Securities report states that the US policy on drug prices will not have much impact on India’s generic drug companies because these companies are already providing low cost medicines. However, some companies that have a business of special branded medicines in the US (like Sun Pharma) whose 15-18 percent of sales come from the US, might be slightly affected. Especially those of their medicines that are also sold in other countries like Ilumya, Winlevi, Odomzo etc.
HDFC Securities on Pharma stocks
| Name of Stocks | Recommendation (Rec.) | Target Price (₹ per share) |
| Alkem | ADD | ₹5,700.00 |
| Aurobindo | ADD | ₹1,350.00 |
| Dr. Reddy’s | REDUCE | ₹1,220.00 |
| Eris Life | BUY | ₹1,500.00 |
| IPCA | BUY | ₹1,800.00 |
| Lupin | ADD | ₹2,330.00 |
| Mankind | ADD | ₹2,830.00 |
| Sun Pharma | BUY | ₹1,970.00 |
| Torrent Pharma | ADD | ₹3,640.00 |
| Zydus Life | ADD | ₹1,120.00 |
HDFC Securities on Healthcare stocks
| Name of Stocks | Recommendation (Rec.) | Target Price (₹ per share) |
| Apollo Hospitals | BUY | ₹7,520.00 |
| Max Healthcare | REDUCE | ₹1,020.00 |
| Medplus | BUY | ₹900.00 |
| Dr Lal Path Labs | ADD | ₹3,080.00 |
| Metropolis | ADD | ₹2,050.00 |
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds and crypto assets.)
HDFC Securities report states that the US policy will not have much impact on India’s generic drug companies because these companies already make cheap medicines. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
