Europe’s largest pharmaceutical corporations confronted European Fee President Ursula von der Leyen yesterday as Donald Trump promised the upcoming arrival of tariffs on U.S. drug imports.
Trump informed visitors on the Nationwide Republican Congressional Committee on Tuesday that the White Home would announce a “main tariff” on pharmaceutical imports “very shortly,” to applause from the partisan crowd.
“We’re going to tariff our prescribed drugs, and as soon as we try this, they’re going to return dashing again into our nation as a result of we’re a giant market.
“One thing that sells for $88 in London sells for $1,300 right here, made in the identical manufacturing unit by the identical firm.
Trump predicted that when these tariffs take impact, pharmaceutical teams would rapidly depart their manufacturing bases exterior the U.S. and construct vegetation within the States.
The U.S. president acquired a serving to hand in getting that message throughout to certainly one of his foremost nemeses, the EU, from the bloc’s personal pharmaceutical corporations.
Europe’s drugmakers confront EU
The European Federation of Pharmaceutical Industries and Associations (EFPIA), the foyer group representing Europe’s largest drugmakers, went to the European Fee (EC) yesterday to carry crunch talks with von der Leyen, calling for radical change and hanging the specter of an exodus to the U.S. over the EC president’s head.
“At the moment, CEOs of the research-based pharmaceutical trade issued a stark warning to President von der Leyen that except Europe delivers fast, radical coverage change then pharmaceutical analysis, improvement and manufacturing is more and more more likely to be directed in direction of the U.S.,” the EFPIA, whose president is Novo Nordisk CEO Lars Fruergaard Jørgensen, stated in a press release.
Representatives from Novo Nordisk, Novartis, Sanofi, and Bayer had been all in attendance on the talks.
The foyer group stated that €103.2 billion ($113.8 billion) of capital and R&D funding plans had been prone to not being fulfilled in Europe as uncertainty mounts.
“The U.S. now leads Europe on each investor metric from availability of capital, mental property, velocity of approval to rewards for innovation.
“Along with the uncertainty created by the specter of tariffs, there’s little incentive to put money into the EU and important drivers to relocate to the US.”
The EU shipped €92 billion ($100 billion) value of medicinal and pharmaceutical merchandise to the U.S. in 2023, in line with Eurostat knowledge. Main U.S. pharmaceutical corporations, together with Pfizer and Johnson & Johnson, manufacture a lot of their medication in Europe earlier than exporting them again to the U.S. Trump desires to repatriate these companies’ manufacturing whereas engaging international producers to U.S. shores.
The EFPIA stated the EU wanted to make progress on competitiveness and strengthening mental property provisions, along with making a world-leading regulatory framework.
“Contributors emphasised the strategic worth of this sector to the EU. They raised sturdy considerations in regards to the broad ramifications of US tariffs, which might damage each side of the Atlantic, with implications for globally interconnected provide chains and availability of medicines for European and US sufferers alike,” a press release from the fee learn.
Shares in Europe’s largest drugmakers plunged in early morning buying and selling as traders digested Trump’s Tuesday remarks.
Novartis shares declined 6.5% by 11 am Central European Time, whereas Sanofi shares fell greater than 5%.
Novo Nordisk shares had declined by about 4%. The Danish drugmaker’s worth has now fallen again to the place it was in late 2022.
This story was initially featured on Fortune.com
