Cipla Shares Fall 5% As Donald Trump Hints At ‘Never Seen Before’ Tariffs On Pharma Sector; Should You Buy?

Cipla Shares Today: Shares of leading global pharmaceutical company Cipla Limited tanked nearly 5% on Friday's intraday trading session after United States Donald Trump hinted at 'never seen before' tariffs on the industry.

A day after sparing pharmaceutical sector while announcing tariffs on Thursday, Donald Trump reversed his stance and said that tariffs on pharma will start "coming soon".

"The pharma is going to start coming in, I think, at a level that we haven't really seen before. We are looking at pharma right now. Pharmaceuticals. It's a separate category. We'll be announcing that sometime in the near future. It's under review right now," Wall Street Journal quoted Donald Trump as saying on Thursday. His comments sent jitters across the pharmaceutical sector stocks on Friday.

Cipla Share Price Today

Cipla shares were trading 5.2% lower at Rs 1417 apiece on BSE at 12:40 pm. Its market capitalisation stood at Rs 1,14,455 crore. The company's scrip witnessed a stellar rally on Thursday in response to Donald Trump's initial comments related to US tariffs on pharma. However, the rally was short-lived as the stock continued to fall on Friday. Cipla shares touched their 52-week-high mark of Rs 1,702 per share on BSE on 9 October 2024. W
Whereas, the company scrip hit a 52-week low mark of Rs 1,317.60 apiece on BSE 10 May 2025.

Cipla stock's value has declined 7.5% year to date (YTD) and nearly 3.6% in last one year. Its shares witnessed significant trading volatility on Friday as the scrip witnessed a spurt in trading volume by more than 1.2 times.

Pharma Stocks Crash Today

Apart from Cipla major pharma sector stocks also declined on Friday. Nifty Pharma, NSE's sectoral index representing more than 20 pharma sector companies, was down more than 4% on Friday. Apart from Torent Pharma, all the other pharma sector companies were trading in red. Laurus Labs Limited shares were down 8.4% to Rs 568.45 apiece. IPCA Laboratories shares were trading more than 6% lower. Shares of Aurobindo Pharma, Lupin, Biocon, Divi's Laboratories, etc were down nearly 4% during Friday's intraday trading session. Most of these companies are set to declare their quarterly earnings for the March quarter this month.

Cipla Shares Recommendation

Cipla US sales are likely to remain under pressure during the quarter under review for multiple reasons, however, its domestic sales will continue to support its growth, noted Centrum Broking in its report released on Friday.

Centrum Give Buy Rating With TP of Rs 1701

"We expect CIPLA US sales to decline 3% YoY to USD220mn due to supply side constraints in Lanreotide," Centrum mentioned in its report adding that it expects Cipla to witness its highest EBITDA margin expansion of 430bp/320bp YoY respectively in March quarter.

Cipla's domestic formulation sales are likely to grow 7.5% annually to Rs 26 billion. Stock investors must watch key aspects about the pharmaceutical company like updated timeline on gAbraxane launch, update on resolving Lanreotide supply issue and timeline of key launches of medicines including gAdvair and gSymbicort. The stock brokerage firm has given a buy rating for Cipla with a target price of Rs 1,701 per share.

Kotak Institutional Securities Give Buy Rating

Kotak Institutional Securities in its Friday's market note 'India Daily' has maintained a 'Buy' rating for Cipla stock indicating an upside of 14% in the coming days. Additionally, it has maintained a neutral stance for the pharmaceutical sector. The brokerage noted that the imposition of US tariffs will negatively impact chemical industry. The industry's important end-use sectors are automotive, construction and consumer durables, in addition to agrochemicals and pharmaceuticals.

Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on article mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.