Supply Chain
Although pharmaceuticals are exempt from the US reciprocal tariff policy, for now, the escalating global trade war is already posing practical on-the-ground problems for some companies, Scrip hears.
An investigation by the US Secretary of Commerce into pharmaceutical imports gives industry an opportunity to comment. AAM CEO John Murphy talked to Scrip about the latest developments.
The big pharma forecast a $400m expense this year related to tariffs, but those estimates only reflect medtech tariffs already announced, not potential pharma tariffs.
India and the US are the major manufacturers of finished dosages for the US market in terms of volume (China accounts for 9% of injectables), though the US relies heavily on India for solid oral dosage forms and specific generics, including lenalidomide and albuterol. Scrip talks to experts on some of the key implications of geographic concentration of production for the US market amid the specter of tariffs.
Several biotech execs said they don’t expect much impact from the Trump administration’s threatened tariffs but are reviewing business practices to prepare.
The Swiss major follows Lilly and J&J in committing to a significant spend on US manufacturing.
China’s imposed large retaliatory tariffs on US pharmaceuticals on 10 April, but some domestic firms with in-licensed, US-origin assets were already moving to localized manufacturing.
The rollout of Trump’s tariff plan has been a policy whiplash, but despite a 90-day pause on tariffs, it appears the US president is still holding a grudge with industry over drug pricing.
European pharma leaders want to see a deal so that no tariffs are imposed on medicines – but they also want the European Union to urgently rethink its sector policies that they believe will lead to massive investment loss.
The US president's most recent comments suggest tariffs on pharma are imminent and Ireland has the most to lose.
Faced with Trump’s hostile tariff moves, the UK aims to speed up clinical trial start times to support its pharma sector and invest £600m in a new health data research service.
Sector-specific tariffs, including on pharmaceuticals, could be announced as early as this week.
The German firm’s chairman, Hubertus von Baumbach, is adopting a ‘wait-and-see’ approach to the threat of pharma tariffs.
Trump announced a 26% reciprocal tariff on India but a country-agnostic exemption of pharmaceuticals implies that the interests of Indian firms and the US consumer are protected for now. What is Indian pharma’s business exposure and what is domestic industry saying?
Pharma executives and investors are waiting with bated breath to find out if President Trump will include drugs in a new round of tariffs to be announced on 2 April.
Supply chain disruption fears at the start of the COVID-19 pandemic caused drug over-ordering. Imminent tariffs on drugs may have had a similar effect on pharma sales in Q1 earnings season.
Indian CDMOs could consider collaborating with allies in Europe amid a focused effort via a new industry body to counter existing challenges like China’s manufacturing, regulatory and policy advantages and a shortage of funding and talent in the country even as talk of US tariffs throws a new spoke in the wheel
The company is building on its existing logistics and manufacturing for the radiopharmaceutical drug ITM-11, which delivered positive Phase III data.
Patient demand for compounded versions of FDA-approved obesity drugs is unlikely to dissipate, even if semaglutide’s “shortage” status is resolved. The issue likely will continue to be a high-profile concern for the brand industry.
A Zydus-Takeda joint venture is expected to supply more raw materials to the Japanese major. Meanwhile, a tie-up with CVS Caremark for the sitagliptin franchise is a boost for Zydus’s US sales while the company focuses R&D efforts on rare diseases like ALS and CAPS