Laurus Labs Downplays Impact of New US Pharma Tariffs on Branded Drugs
Laurus Labs Ltd. does not anticipate any significant implications of the US tariff of 100% on branded or patented pharmaceutical products, according to a top executive.
Satyanarayana Chava, founder and chief executive officer, said in a statement, “It is too early to comment, as the world needs to understand the process to be followed by the US. However, we don’t see any significant implication of the additional tariff announcements.”
US Tariff on Branded or Patented Pharmaceuticals
The Trump administration will impose a 100% import tariff starting Oct. 1 on branded or patented drugs unless a company has or is building a manufacturing plant in the US. This presents a fresh challenge to Indian pharmaceutical companies.
The US is the largest market for Indian drugmakers. India exported $3.7 billion worth of pharma products to the US in the first half of 2025.
Laurus Labs’ Revenue Streams
Laurus Labs derives 40% of its revenue from antiretroviral (ARV) drugs, which are a class of medications used to treat and prevent infections caused by retroviruses, most commonly the Human Immunodeficiency Virus (HIV). This segment remains insulated as most sales are to the African region, according to the CEO.
Non-ARV generics (27% of topline) continue to be exempted from US pharma tariffs. US generic margins are thin to absorb any import duty hike.
On the contract development and manufacturing operations (CDMO) side, which has a 33% share in total revenue, the company supplies intermediate, advanced intermediates, and APIs, but not finished formulations.
Impact of US Tariff on Laurus Labs
Chava said, “Only around 5% of sales are shipped to the USA and we believe any tariff burden will likely be passed on to our clients.”
Laurus Labs share price fell 8.2% intraday to Rs 823.1 apiece after the US tariff announcement. The benchmark Nifty 50 was down 1%. The total traded volume so far in the day stood at three times its 30-day average. The relative strength index was at 66.
Analyst Ratings and Price Target
The stock has risen 81% in the last 12 months and 39% on a year-to-date basis.
Seven out of the 16 analysts tracking Laurus Labs have a ‘buy’ rating on the stock, three recommend a ‘hold’ and six suggest a ‘sell’, according to Bloomberg data. The average of 12-month analyst price target implies a potential downside of 5%.
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