Laurus Labs shares took a steep 15% dive on January 27, breaking a two-day streak of gains. Investors seemed eager to pocket profits after the stock’s nearly 6% climb earlier in the week, fueled by better-than-expected Q3 results. But it wasn’t just profit-booking at play – reports of the U.S. halting foreign aid added serious weight to the sell-off. The potential suspension of the President’s Emergency Plan for AIDS Relief (PEPFAR) has rattled nerves. This program, a lifeline for millions relying on antiretroviral medications (ARVs), is under threat as U.S. foreign aid policies face a freeze. With over 20 million people in 55 countries benefiting from ARVs via PEPFAR, any funding disruption could have a ripple effect, including on pharma companies like Laurus. On the brighter side, Laurus Labs’ December quarter results showed a turnaround, with EBITDA margins climbing back to 20%—a level not seen in seven quarters. The company reaffirmed its full-year guidance, aiming for longer-term growth through its CDMO and Bio segments. However, the sluggish API segment remains a drag, with recovery expectations pushed to post-FY26. Brokerage houses seem divided. Choice Broking dialed down its optimism, shifting to a ‘hold’ rating with a target of ₹639, citing medium-term growth potential but cautioning about short-term pressures. Goldman Sachs, however, isn’t convinced, sticking with its ‘sell’ rating and a sharper price target of ₹475, noting a lack of FY25 revenue guidance despite management’s focus on laying the groundwork for future growth. For now, the market remains skeptical, and Laurus has a steep hill to climb to regain investor confidence.