Lilly Biotechnology Center in San Diego, California, March 1, 2023.
Mike Blake | Reuters
The actions of certain drug manufacturers increased Wednesday after President Donald Trump said that he would arouse high rates on dozens of countries, temporarily attenuating fears of the impact of potential prices on imported pharmaceuticals in the United States
Trump on Wednedsay has announced that he would reduce prices to most countries to 10% for 90 days, but that he would immediately increase the prices on China to 125%. But the break does not seem to apply to specific prices for the sector.
Pharmaceutical actions dropped earlier on Trump’s comments on Wednesday earlier which doubled on the plans to impose pharmaceutical rates.
The actions of most American companies have become positive on Wednesday after Eli Lilly,, Abbvie,, Bristol Myers Squibb,, Regeneron,, Cripple,, Pfizer,, Johnson & Johnson And Amgen All fell from at least 2% to 4% earlier during the day. Certain actions of companies abroad, such as Astrazeneca,, Novo Nordisk And Novartiswere also positive, while the British drug manufacturer GSK was still down 5%.
Trump said on Tuesday that his administration would announce a “major” rate on pharmaceutical products “very soon”, despite the fallout from the global samples, according to several reports. He exempted pharmaceutical products from his radical prices unveiled last week in temporary relief for drug manufacturers.
The president said the prices will encourage pharmaceutical companies to move manufacturing operations in the United States – an effort that Eli Lilly, Johnson & Johnson and others are already continuing. This occurs while the national manufacturing of the pharmaceutical industry has been considerably reduced in recent decades, with key parts of the production process in China, India and other countries where labor and other costs are less expensive.
American imports of pharmaceutical products reached nearly $ 213 billion in 2024, more than twice and a half times the total a decade earlier, according to the United Nations Commerce International Trade Database.
Folder photo: The Pfizer logo is seen at their world registered office in New York on April 28, 2014.
Andrew Kelly | Reuters
However, Wall Street analysts and companies have feared that it is difficult to reshape production in the country, which will be expensive, could take several years and could disrupt the pharmaceutical supply chain and increase the costs of drugs for patients. Medicines manufacturers count on a complex network of manufacturing sites, sometimes in different countries for different stages of the production process.
“Global supply chains are complex, with most of the majority – it is not as simple as moving where someone fucks in small screws to make an iPhone,” said BMO capital market analyst, Evan Seigerman in a note on Wednesday.
He said the prices “will probably not do much to change manufacturing” in the United States, because companies already have robust operations in the country.
Seigerman said that he expects most major pharmaceutical companies probably set a goal “to wait for the end of Trump’s presidency to consider more permanent manufacturing decisions”.
A group of Democrats in the Chamber would also have called on the administration to protect the medical supply chains from what they called the “devastating consequences” that the trade war could inflict on American patients.
“Disturbances in the supply of critical medical products inevitably harm American patients, oblige providers to make impossible ration decisions and, potentially even, death is delay, or more effective drugs and products are exchanged for less effective alternatives,” the legislators wrote in the letter, reported the hill.
Some companies that have invested billions to stimulate American manufacturing and build goodwill with Trump have pushed prices, warning of their potential impact on research and development in industry and patients.
“We cannot violate these agreements, so we have to eat the cost of prices and compromise in our own companies,” said Eli Lilly CEO Dave Ricks
“As a rule, it will be in reduction of staff or research and development, and I predict that R&D will come first. It is a disappointing result,” said Ricks.
J & J has also announced a new investment of $ 55 billion in the manufacture, research and development and technology of the United States over the next four years. The company did not comment on the prices.