Indian pharmaceutical stocks supplying antiretroviral (ARV) drugs to African countries faced a sharp sell-off on January 27, following a US government order halting all foreign aid funding for 90 days, including the President’s Emergency Plan for AIDS Relief (PEPFAR). This program, crucial for HIV treatment in around 50 countries, many in Africa, faces an uncertain future under the executive order issued by President Donald Trump. PEPFAR funding accounts for a significant share of global HIV treatment, with US HIV spending constituting 44% of its total global health funding in FY24, according to Brookings. The halt has cast doubt on the revenue streams of Indian pharma companies reliant on US-backed ARV sales. Laurus Labs, whose ARV business comprises 46% of total revenue, saw its shares plummet nearly 15%, hitting a two-month low despite strong Q3 results. Other pharma players with ARV exposure, including Strides Pharma, Aurobindo Pharma, and Cipla, also witnessed declines. The Nifty Pharma index fell 2.65% on Monday. For Aurobindo Pharma, ARV sales contribute just 3% of revenue, approximately ₹868 crore in FY24, while Cipla has reduced its ARV exposure in recent years. With the ARV market valued at $1.5 billion annually, industry watchers will monitor developments closely, particularly as Indian pharma companies navigate this temporary freeze amidst efforts to diversify revenue sources and reduce dependence on foreign aid-driven sales.