Pharma tariffs still have a lot of questions outstanding, says Bernstein's Courtney Breen

Core Viewpoint - The discussion centers around the implications of U.S. manufacturing policies and tariffs on the pharmaceutical industry, particularly regarding imports and drug pricing strategies. Group 1: U.S. Manufacturing and Tariffs - There are ongoing questions about the exemption status of companies with pre-existing U.S. manufacturing plants concerning tariffs [2][3] - The White House has clarified that countries with trade agreements with the U.S. will have their pharmaceutical companies exempt from certain tariffs, raising concerns about the impact on countries like India and Switzerland that lack such agreements [4] - In 2024, the value of pharmaceutical imports into the U.S. is projected to be approximately $214 billion, with Europe accounting for about 60% of these imports [5][6] Group 2: Drug Pricing and Market Impact - Drug pricing remains a primary concern for investors, significantly influencing business models and valuations within the pharmaceutical sector [8] - The upcoming deadline on September 29 is expected to bring clarity on drug pricing policies, which have been a major factor in margin compression for pharmaceutical companies [9][10] - The administration's leverage on drug pricing has been tied to tariff negotiations, indicating that changes in tariff policies may lead to more pricing news in the near future [10][11]