Pharma Stocks Slide Over Trump's Relief Fund Freeze

Shares of Laurus Labs on Monday fell nearly 15% as the company's ARV sales make up about 46% of its total revenue

- Jessica Jani

Stocks of Indian pharma companies supplying antiretroviral (ARV) medicines used to treat HIV to African countries tumbled on Monday after a US government order halted all foreign aid funding, including its AIDS relief program.

On January 25, the US State Department put into action an executive order from President Donald Trump halting all US foreign assistance, barring Israel and Egypt, for at least 90 days to review all the programs. This includes the President's Emergency Plan for AIDS Relief (PEPFAR), which provides ARVs to people in about 50 countries, of which half are in Africa. HIV spending made up 44% of total US global health funding in FY24, according to US think tank Brookings.