Overview
- Donald Trump announced that a major tariff on pharmaceutical imports will be unveiled soon, aiming to incentivize companies to relocate drug manufacturing to the United States.
- Indian pharmaceutical companies, heavily reliant on U.S. exports for revenue, face significant risks, with major firms like Biocon and Lupin seeing sharp stock declines of up to 5%.
- European pharmaceutical giants, represented by EFPIA, warned of a potential exodus of over €100 billion in planned R&D and manufacturing investments to the U.S. unless the EU enacts swift policy reforms.
- Shares of major European drugmakers, including Novartis, Sanofi, and Bayer, fell sharply, with losses exceeding 5% in some cases, reflecting investor concerns over the impending tariffs.
- The tariffs could disrupt global supply chains and impact the availability of medicines in both Europe and the U.S., as pharmaceutical companies reassess their production strategies.