US Pharmacopeia CEO sees opportunity for generic drug-makers despite tariffs

New drug tariffs are here — but thanks to $325B in US manufacturing investments, domestic pharma is well-positioned to weather the impact. https://lnkd.in/gzTNE-6t

The U.S. pharmaceutical industry is operating in one of its toughest environments yet. Global supply chains built for efficiency are now disrupted by politics, tariffs, and national security concerns. New U.S.–EU tariffs on branded medicines, pending Section 232 investigations, and executive orders tying U.S. drug prices to the lowest abroad are reshaping the market in ways biopharma hasn’t seen before. Once Washington shows it can set prices, direct supply chains, and reset margins by executive action, the precedent is established—and future administrations of either party will build on that playbook. At our recent closed-door Advisory Board in Boston, Zensights convened 10 pharmaceutical executives alongside our Federated Healthcare Advisory Panel of senior military and government leaders to explore how wargaming and red-teaming can help companies anticipate—not just react to—these shocks. The questions we asked together are the ones that matter now: - Are you rehearsing responses to policy shocks before they arrive? - Does your leadership team practice scenario-planning across Commercial, Medical, R&D, Manufacturing, and Supply Chain—or are decisions still made in silos? - When MFN pricing was announced, did your organization have red lines and mitigation strategies ready? The companies that train are the ones that will turn disruption into advantage. #AdvisoryBoard #FHAP #FederatedHealthcareAdvisoryPanel #Zensights

Policy shifts, drug pricing reform, and import tariffs are rewriting the rules for life sciences – driving up costs, disrupting access, and putting patient outcomes at risk. Explore how leading companies use real-world data to anticipate change, protect product value, and respond with speed and precision. https://ow.ly/HUoM50X6rM1

Why FDA's Tough Talk On Foreign Inspections Is More Bark, Less Bite Tariffs grab headlines—but FDA’s foreign inspection crackdown could reshape drug manufacturing even more. By Robert Dormer and John Claud — Hyman, Phelps & McNamara, P.C. https://lnkd.in/ePxWZce3

#Trump’s plan to impose a new 100% tariff on branded #pharmaceuticals means the sector — until now, largely spared from US duties — is finally in the crosshairs. The EU’s #trade agreement should, however, cap those #tariffs at 15%, with further relief possible through company-level exemptions tied to US investment. While Trump’s social media announcement left many details unclear, even a 15% levy on EU pharma would still mark a significant increase, lifting the average levy on EU goods to 15% from about 11%. We estimate this would trim about 0.3% from euro-area GDP. The impact would differ across member states, depending on the weight of the pharmaceutical sector in each economy. The full article is available here: https://lnkd.in/ebgQ8Zt6. Trade data below are available using the terminal function: BECO MODELS TRADE<GO>.

Op-Ed: Tariffs on medicines threaten patients, innovation and New Jersey’s biopharma leadership 🔗 Read the full op-ed here: https://ow.ly/YAv950X5enR #BioPharma #PatientAccess #Innovation #LifeSciences #TariffImpact

Generics Are Next: Why U.S. Tariffs Could Disrupt Lower-Cost Medicines While branded drugs are in the spotlight, generic pharmaceuticals cannot assume immunity. The U.S. tariff move is currently targeted at patented medicines, but the logic of supply chain security and domestic production incentives could extend to generics. Even without direct tariffs, buyers may favor generics from suppliers with a U.S. footprint, potentially reshaping market access. For non-U.S. generics manufacturers, this creates a strategic crossroads: - Evaluate U.S. partnerships or toll manufacturing opportunities - Diversify supply chains across Europe and other markets to reduce exposure - Strengthen regulatory alignment and compliance to ensure continued market access Generics supply the majority of medicines in the U.S., so any disruption could impact affordability, health systems, and competitive dynamics. I warned this moment would come. The real question is not if tariffs will affect generics, but when. Now is the time to act. For anyone seeking guidance on developing strategic responses for generic pharmaceuticals, feel free to reach out. #Pharma #GenericDrugs #TradePolicy #Tariffs #GlobalTrade #MarketAccess

Earlier I raised concerns about the new 100% tariffs on EU pharmaceuticals. The new US-EU trade framework suggests a 15% ceiling (MFN + Section 232) for pharma imports — and generics seem clearly covered. That means the most extreme tariff scenarios are unlikely for these products, though market uncertainty remains. Curious: could this framework help stabilize supply and pricing for generics amid trade tensions?

Today, 100% tariffs on imported branded/patented drugs are slated to go into effect. They have significant stakes for pharma’s global operating model. "Tariffs at this scale will force drug makers to rethink where and how they operate. You’ll see more pressure to localize manufacturing, but also a push to get leaner everywhere else, especially in how companies commercialize and engage doctors and patients. The winners will be the ones who adjust quickly without losing sight of access," Chase Feiger, M.D., CEO of Ostro recently shared. Full article accessible via the link in the comments:

🚨 BREAKING: 100% Tariffs Just Changed the Pharma Game Forever Trump just dropped a bombshell that will reshape the entire pharmaceutical industry. Starting October 1st: → 100% tariff on ALL branded/patented drug imports → UNLESS you're building manufacturing in the US → No exceptions. No delays. This isn't just policy—it's industrial warfare. Here's what this means: ✅ Big Pharma scrambling to break ground on US facilities ✅ Billions in manufacturing investments incoming ✅ Supply chain chaos in the short term ✅ Potential drug price volatility The real question: Will this actually bring pharma jobs back to America, or will patients pay the price while companies figure it out? My take: Companies like Eli Lilly are already announcing $6.5B+ facilities. Smart money saw this coming. But here's what nobody's talking about, generic drugs are exempt. That's the loophole that could determine everything. What do you think? 📈 Genius move to rebuild US manufacturing? 📉 Short-term pain that hurts patients? 🤔 Will other industries be next? Drop your predictions below 👇 #Pharmaceuticals #Tariffs #Manufacturing #Healthcare #SupplyChain #Trump #BigPharma #InvestmentNews