Pharmaceutical Tariffs ‘A Light At The End Of The Trump Tunnel’ For Big Pharma, Says Jefferies
Synopsis
The analyst noted that several large-cap pharmaceutical companies have already announced plans to build U.S. manufacturing facilities.
Jefferies analyst Akash Tewari on Friday stated that President Trump’s proposed 100% tariff on pharmaceutical imports is “a win for Pharma.”
Trump said in a post on Truth Social on Thursday that the United States will impose a 100% tariff on branded and patented pharmaceutical products starting October 1 unless manufacturers are actively building plants in the country.
The analyst termed the news “a light at the end of the Trump tunnel” and noted that several large-cap pharmaceutical companies have already announced plans to build U.S. manufacturing facilities. Tewari further stated that the tariffs may not have a material effect on pharmaceutical companies.
In February, Eli Lilly and Company (LLY) announced its plans to bolster its domestic medicine production by building four new pharmaceutical manufacturing sites in the U.S., bringing the company’s total U.S. capital expansion commitments to more than $50 billion since 2020.
Following the announcement by Trump on Thursday, LLY shares traded 1% higher in the pre-market session at the time of writing, while Merck (MRK) shares rose 1.4%.
Get updates to this developing story <directly on Stocktwits.<
Stay updated with all the latest Business News, including market trends, Share Market News, stock updates, taxation, IPOs, banking, finance, real estate, savings, and investments. Track daily Gold Price changes, updates on DA Hike, and the latest developments on the 8th Pay Commission. Get in-depth analysis, expert opinions, and real-time updates to make informed financial decisions. Download the Asianet News Official App from the Android Play Store and iPhone App Store to stay ahead in business.