The Impact of Pharmaceutical Tariffs and Pricing Risks on Biopharmaceuticals
Tariffs are expected to be manageable for pharmaceutical companies, while US drug price reform looms.
The Trump administration is likely to implement tariffs on pharmaceutical imports into the US, which is anticipated to have a larger impact on generic drugs than branded drugs. Our researchers expect US and European Union pharmaceutical companies to mitigate these tariff costs and any potential future biopharma trade policies by relocating some manufacturing capacity and transferring technology from Europe to the US. In addition to tariff considerations, the Trump administration is demanding drugmakers to lower prices, which would have larger implications on the industry and public health.
Morningstar’s latest report analyzes a representative basket of 5 large US and 5 large European drugmakers to estimate the effects of pharmaceutical tariffs on imported drugs into the US, the impact to the global supply chain to relocate manufacturing to the US, and the revived push for US drug prices to be lowered to most-favored-nation (MFN) prices.
Download the report to discover how these geopolitics may influence investment decisions.
