Trump's drug dealer panics; Anil Singhvi expects a stock to bring rebound
President Donald Trump signed an executive order to boost domestic drug manufacturing and ahead of plans to import drugs. The move aims to reduce dependence on countries such as China and Europe, which have lower production costs.
In a recent segment about the ZEE business, executive editor Anil Singhvi analyzed the impact of Trump's new executive order. The move could change global dynamics, and Singhvi pointed to the reaction of Indian pharmaceutical stocks.
Nifty Pharma reaction
Indian pharmaceutical companies have opened low shares after U.S. President Donald Trump signed an executive order to boost domestic drug production, raising concerns about export damage. The Nifty Pharma index fell 1.4%, with Lupin and Aurobindo falling more than 3%. The order directs the FDA to quickly train with drugs made in the United States and tighten supervision of foreign plants. Trump also hinted about upcoming tariffs on imported drugs, and concerns escalated over top Indian exporters such as Sun Pharma, Cipla and Dr. Reddy.
The United States will shift its focus to domestic manufacturing
Trump's order aims to expand drug production in the United States, speed up FDA approval of U.S. factories, and increase inspection fees for foreign manufacturing units. This policy direction marks a driving force for greater self-sufficiency in the U.S. healthcare supply chain.
“Trump's style directly supports domestic industries while making global competitors more expensive,” Singhway stressed.
Indian pharmaceutical pressure, but nothing is negative
The company likes it Dr. Reddy, Lupine and Cipla, Due to potential regulatory burdens and increased costs, largely relying on U.S. exports may face pressure in the near term. However, Singhway stressed that the U.S. political sensitivity to drug prices could prevent Trump from imposing direct tariffs.
“Healthcare is an area where voters are seriously affected. No government wants to be blamed for rising medical expenses,” he explained.
Glenmark appears as a watch stock
Despite the caution of the outlook, Singhvi stressed that Glenmark is a company that demonstrates commitment amid sector volatility. “If the pharmaceutical sector stabilizes or becomes positive, Glenmark may lead to recovery. Good news around it,” he noted.
Market sentiment moves towards near-term action
Singhvi advises investors to monitor emotions and policy clarity closely. “Now, the market responds to expectations more than the fundamentals at the moment. Stay flexible and stay informed,” he concluded.
For full analysis and ongoing updates, please adjust the Zee business with Anil Singhvi.
