STAT+: Pharmalittle: We’re reading about Trump’s drug pricing plans, pharma tariffs, and much more
And so, another working week will soon draw to a close. Not a moment too soon, yes? This is, you may recall, our treasured signal to daydream about weekend plans. Our agenda is still shaping up, but we may rendezvous with a long-lost relative, manicure the unruly Pharmalot grounds, and hold still another listening party with Mrs. Pharmalot, where the rotation may include this, this, this, this and this. And what about you? This is a lovely time of year to enjoy just about anything involving the great outdoors, weather permitting. So perhaps you can stock up on apples and pumpkins, or traipse through gnarly woods in search of hidden streams and existential moments. Or if you find yourself indoors, there are books and moving picture shows to absorb. The choices are seemingly endless, yes? Well, whatever you do, have a grand time. But be safe. Enjoy, and see you soon. …
President Trump threatened pharmaceutical companies with a 100% tariff unless they build manufacturing plants in the U.S., STAT notes. The tariff would begin on Oct. 1 and could affect all “branded or patented” drugs, the president said in a social media post. Companies could avoid it by building manufacturing facilities in the U.S., Trump said, defining “building” as “‘breaking ground’ and/or ‘under construction.’” The post comes days before a deadline he set for drug companies to lower their prices. The Trump administration made lowering drug prices through a so-called most-favored nation policy, in which the U.S. is charged the same prices other countries pay, a top priority. The administration opened a probe into the national security rationale for tariffs on drug companies, known as a Section 232 investigation. The results, expected in the coming months, could offer the president a pathway to levy tariffs on the pharmaceutical industry. Drug companies are in the middle of months-long talks with the administration about lowering their prices in the U.S., but no deals have been publicly announced.
Several global drugmakers have announced large U.S. investments in recent months in response to pressure from President Trump, although it is not clear from public disclosures how far those projects have progressed, Bloomberg News adds. For instance, Merck, Novo Nordisk, and Eli Lilly are among the companies that have started U.S. building since 2023, with construction sites in Delaware, North Carolina, and Texas. The projects are aimed at anchoring supply chains inside U.S. borders and supporting blockbuster medicines. AbbVie has said it will begin expanding its Illinois facilities this fall. The new duties could hit about $220 billion of U.S. pharmaceutical imports and lift the average tariff rate by 3.3 percentage points, Bloomberg Intelligence economists estimate. Still, substantial uncertainty remains, including whether countries or regions that have struck trade deals with the U.S. will avoid the new levy. For example, the European Union’s trade agreement from late July specified that tariffs on medicines would be 15%, and it is unclear if that arrangement cancels out the latest levy.
Ed Silverman
Go to statnews