Indian Pharma Gains From US Zero-Tariff Clarity

, Sun Pharma and Zydus Lifesciences: The US Department of Commerce has issued guidance under Proclamation 11020, clarifying the specialty pharmaceutical products and jurisdictions eligible for a 0% Section 232 tariff rate. India is among 19 eligible jurisdictions. The exempt categories include orphan drugs, nuclear medicines, plasma-derived therapies, fertility treatments, cell and gene therapies, antibody-drug conjugates and certain other specialty medicines. Importantly, generic pharmaceuticals and their associated ingredients are currently outside the Section 232 tariff regime. Stock Commentary: DIVISLAB: The US tariff clarification is positive as generic products and associated ingredients remain outside Section 232 tariffs, reducing a major overhang for Divi’s CDMO/API operations. SUNPHARMA: Positive for Sun Pharma as its existing company-specific agreement provides tariff protection, while the broader specialty-drug exemption further reduces US tariff uncertainty. ZYDUSLIFE: Positive as its innovative portfolio includes orphan and rare-disease therapies that can fall within the exempt specialty categories, subject to US eligibility conditions.