The CEO of Eli Lilly and the company David Ricks speaks to the New York Economic Club on March 12, 2024 in New York.
Spencer Platt | Getty images
Eli Lilly CEO Dave Ricks said Thursday that the drug manufacturer can help “respond” national security problems concerning essential drugs cheaper as pharmaceutical rates.
The Trump administration has opened an investigation into article 232 on how the import of certain drugs in the United States affects national security – a decision widely considered as a prelude to the launch of prices on pharmaceutical products. We do not know what these samples will look like and if they are targeting branded or older drugs, the latter are largely made abroad in countries like India and China.
“Reports This capacity, so in case of emergency, we have the stock, we have the offer – this is a valid thing,” said Ricks in an interview with CNBC, referring to these older drugs. He spoke after Eli Lilly published income in the first quarter and directives in 2025, which did not include the estimated effects of potential pharmaceutical rates.
He said national security problems concerning these drugs are “valid”.
But he added: “Do I think the prices are the answer to this? I’m not so sure personally.”
“We would be happy to speak to this administration or to national security people the way we could react to such a crisis,” he said. “We have ability to bring there, and we are happy to help the country if we need it.”
Older generic drugs represent approximately 90% of the drugs prescribed in the United States, many are essential for hospital care, including antibiotics and vasopressants, or drugs that increase blood pressure.
Ricks noted that these essential drugs are “not easy to do, but they are cheap, and they have been driven from our country due to the costs and other harmful policies”.
However, some health experts have already told CNBC that generic drug prices, which have much lower beneficiary margins than brand medicines, could force certain generic drug manufacturers to leave the American market completely. This could cause or exacerbate shortages from certain generic drugs in the United States, such as sterile injectable drugs that are commonly used in hospitals.
Rick’s comments come as drug manufacturers are preparing for the planned pharmaceutical rates of President Donald Trump, who aim to stimulate national manufacturing. These tariff threats already feed a new wave of American manufacturing investments in the pharmaceutical industry.
This includes Eli Lilly, who announced in February that she will invest at least $ 27 billion to build four new production sites in the United States
Ricks said on Thursday that prices may not be necessary after the industry moves to the manufacture of reshaping.
“I think that in reality, the threat of prices already brings back critical supply chains in important industries, chips and pharmaceuticals,” said Ricks. “We must therefore implement [tariffs?] I’m not so sure. “”
He added that Eli Lilly wanted to see permanent lower tax rates in the United States, in particular 15% for domestic production. Ricks said that lower taxes have led many drug manufacturers to be manufactured in “low -tax islands such as Ireland, Singapore and Switzerland, and this can come back if there is an economic incentive”.
This echoes the feeling of the comments of the CEO of Pfizer, Albert Bourla, on Tuesday. Although Bourla has argued that uncertainty concerning prices dissuade the company from making American investments in manufacturing and research and development.