Navigating the Hot Topics for Bio/pharma
As the bio/pharma industry faces the looming threat of tariffs, it is clearer than ever that reporting on the key issues and trends set to shape industry is imperative to help stakeholders stay informed.
Hardly a day passes by and another new headline about tariffs seems to send the stock markets and numerous global industries spinning. For the bio/pharma industry, the latest headlines are certainly causing concern as the Trump administration makes a move toward the ‘threatened’ removal of the pharmaceuticals tariff exemption by starting an investigation into imports of pharmaceuticals (1).
Some immediate negative effects have already been seen by industry as, only a short while after President Trump announced, on April 8, 2025, there would be tariffs imposed on pharmaceuticals imported into the U.S., stocks in bio/pharma companies tumbled (2). This was a particularly worrisome outcome for E.U. and U.K. based companies, which export vast amounts of pharmaceuticals to the U.S. each year and, as a result, saw the largest drops in share prices (3).
Another key pharma exporter to the U.S. market, India, also felt shockwaves in share prices as a result of the looming tariff announcement (4). Drugmakers from India have warned that they would need to raise prices to counteract the imposed tariffs from the U.S., which would in turn have cost implications on medical bills for U.S. patients.
Prior to the investigation into imports of drugs, leaders from the largest European bio/pharmaceutical companies had already raised their concerns about potential tariffs. Ramifications on the medicines’ supply chains are a particular concern, and that the region could face a mass exodus of companies as a result of the tariffs (5). Industry representatives, which included Novo Nordisk, Novartis, Sanofi, and Bayer, have urged the European Commission’s President, Ursula von der Leyen, to rapidly take action with initiatives that can strengthen the position of the E.U. as a global leader in biotech and biomanufacturing.
In the U.S., drugmakers have also been lobbying the President to implement any tariffs on pharmaceuticals in a phased, incremental way (6). It is hoped that if tariffs are imposed incrementally, it will be less impactful on companies and will allow some manufacturing adjustments to be implemented.
A key driver for the imposed tariffs is to bring manufacturing back to U.S. shores; however, for the bio/pharmaceutical industry just upping sticks is not an easy task. “You don’t move manufacturing overnight,” said Justine Fassion, an international trade lawyer at Sidley in an article from POLITICO (7).
Bio/pharma companies are subject to strict regulatory conditions, which means moving manufacturing lines from one country to another takes a considerable amount of time. Building a new facility is obviously an even lengthier process and, given the tariffs on steel and other materials in addition to the higher cost of labor in the U.S., would be an expensive change for many companies.
While some bigger bio/pharma companies may be able to absorb the costs of the tariffs, as alluded to by Eli Lilly’s Chief Executive, David Ricks, in an interview with the BBC (8), if significant tariffs are imposed, then companies will be faced with hard financial decisions and operational hurdles to overcome. For example, industry could see reduced spending in R&D and cuts in staffing to mitigate the impact of the tariffs on profit margins.
Of further concern is the potential disruption that may be experienced in the supply chain, which has been hit hard over the past five years already, as a result of the pandemic. However, as discussed by Stephen Lam and J.D. Mowery from Bora Biologics and Bora Pharmaceuticals, respectively, in a recent fireside chat — and summarized by The Pharma Navigator (9) — novel approaches are being evaluated to help innovators overcome biopharma supply challenges.
As the world faces this period of geopolitical instability and financial turbulence, it is imperative that the hot topics and various trends that could shape the future of the bio/pharma industry are reported on in an informative and easily accessible way. In my new role as Associate Director of Editorial and Content for The Pharma Navigator, I will be drawing upon my 20+ years of experience to push our content agenda forward and provide our valued readers with a practical resource, incorporating news, feature articles, video interviews, and more, that will enable them to stay abreast of biggest stories for the biopharma industry.
If you are interested in connecting with me about potential upcoming editorial opportunities for The Pharma Navigator I invite you to email me at Felicity.Thomas@thepharmanavigator.com and I shall look forward to connecting, or even re-connecting, with you soon.
References
Wingrove, P.; Lawder, D. U.S. Steps Up Probes into Pharmaceutical, Chip Imports, Setting Stage for Tariffs. Reuters, April 15, 2025.
Mishra, M.; Agarwal, A. Global Pharma Shares Plunge as Trump Doubles Down on Tariff Threat. Reuters, April 9, 2025.
O’Carroll, L. E.U. Drug Companies Warn of Exodus to U.S. as Trump Threatens Import Tariffs. The Guardian, April 9, 2025.
Hagan, R.; Shukla, A. Trump Threatens to End Pharmaceuticals Tariff Exemption. BBC News, April 9, 2025.
E.C. Read-Out of the Dialogue with the Pharmaceutical Industry. Press Release, April 8, 2025.
Fick, M.; Erman, M. Exclusive: Pharma Industry Lobbies Trump for Phased Tariffs, Sources Say. Reuters, April 1, 2025.
Eccles, M.; Cokelaere, H. Trump Says Pharma Tariffs Will Entice Back Drug Production. They Won’t. POLITICO, April 14, 2025.
Jack, S. Tariffs ‘Hard to Come Back From’, Says U.S. Pharma Boss. BBC News, April 4, 2025.
The Pharma Navigator. Working Holistically: A New Partnership Model for Biologics Supply. ThePharmaNavigator.com, April 17, 2025.