Nifty Pharma Stocks Down: Gland & Glenmark Shares Falls 8% After Market Crashes on Black Monday

The Nifty Pharma index experienced a nearly 6% decline on Monday, April 7. This happened due to the concerns that the United States (US) might impose new tariffs on generic drugs exported from India. As a result, investors got worried and sold off stocks in the pharmaceutical sector.

Nifty Pharma Stocks Today

On Monday, April 7, shares of Indian pharmaceutical companies, such as Gland Pharma Ltd., Laurus Labs Ltd., Glenmark Pharmaceuticals Ltd., and Biocon Ltd., fell as much as 8%.

The worst-hit company was Gland Pharma, which fell more than 11.4%. Divi's Labs and Laurus Labs also saw declines of more than 10% in early trading. Sharp cutbacks of 3-6% were also observed at Sun Pharma, Cipla, Aurobindo Pharma, and Lupin.

In early trading, the index fell to 19,425 due to sharp drops in major exporters such as Divi's Laboratories, Laurus Labs, and Gland Pharma, all of which saw intraday declines of more than 11%. At 12:31 pm, the Nifty Pharma index was down by 2.96%, trading at Rs 19,952.40.

The dramatic drop comes amid growing concerns that the US may impose substantial reciprocal duties on Indian pharmaceutical imports, particularly generics. If carried out, this measure could drastically increase drug prices for US customers while directly affecting India's pharmaceutical exporters, who currently dominate the global generics industry.

India's pharmaceutical exports to its largest market U.S. are primarily made of low-cost generic formulations. Analysts warned that any import duties might reduce competitiveness, strain supply systems, and cause delays in approvals for newer files.

In FY24, India shipped more than $6.5 billion worth of pharmaceuticals to the US. For businesses that rely significantly on US sales, a tariff of even 10-15% might have a significant effect on profit margins.

Aurobindo Pharma Gains European Union Approval for Dyrupeg

Aurobindo Pharma announced that its subsidiary, CuraTeQ Biologics s.r.o., has received approval from the European Commission (EC) to market Dyrupeg in the European Union. The European Medicines Agency's Committee for Medicinal Products (CHMP) recommended the approval of Dyrupeg, a biosimilar medicine containing pegfilgrastim.

Dyrupeg is designed to reduce the duration of neutropenia and prevent febrile neutropenia in adult cancer patients undergoing cytotoxic chemotherapy. Aurobindo Pharma, a major player in the pharmaceutical industry, focuses on manufacturing and marketing active pharmaceutical ingredients, generic drugs, and related services, expanding its global presence with this approval.

In Q3 FY25, Aurobindo Pharma's consolidated net profit dropped 10.04% to Rs 845.57 crore from Rs 939.97 crore in Q3 FY24. In the quarter that concluded on December 31, 2024, Aurobindo Pharma's revenue from operations climbed 8.53% year over year (YoY) to Rs 7,978.52 crore.

'Black Monday' Stock Market Today

In pre-open trading, Indian indices suffered, falling more than 5%. The Indian stock index, Nifty 50 opened almost 4.76% lower at 21814.3 points, while the BSE Sensex tumbled nearly 4.6% to 71893 points.

All of the major market indices were in red. Furthermore, no industry indicator escaped the stock market bloodbath today. The larger mid-caps and small-caps saw losses of 7.3% and 10%, respectively. Nifty Auto, Pharma, and IT were the biggest losers in Monday's opening session.

The US stock market experienced its worst day since the COVID-19 pandemic on Friday, April 4, 2025. Within hours, equities fell and volatility skyrocketed, wiping out over $5 trillion.

With Japan and Taiwan setting off circuit breakers for the first time since March 2020, the European and Asian markets suffered a significant setback on April 7, 2025. In just three days, bank stocks lost about 25%, and Tokyo's Nikkei 225 fell to an 18-month low.