Barclays: The pharma sector is very out of favor for tariffs

Potential Impact of Tariffs on European Pharmaceutical Companies - Determining which European pharmaceutical company would be most impacted by potential tariffs is difficult due to complex and opaque supply chains [1] - Novo Nordisk has been highlighted due to the manufacturing of active pharmaceutical ingredient for Wegovy (WGO) in Denmark [2] - The pharmaceutical sector is currently out of favor due to tariffs and other reasons [3] Lobbying and Manufacturing Investments in the US - European companies are making significant announcements about manufacturing investments in the United States [4] - Companies are working with the administration on the most favored nation drug pricing policy, potentially connected to tariffs [5] - Almost every major large-cap European company has announced extensive investments in the United States [10] Tariff Specifics and Potential Carveouts - The pharmaceutical sector is currently carved out from country-specific tariffs, contributing to the outperformance of the European healthcare index [7] - The market is awaiting results of a Section 232 investigation from the Commerce Department regarding sector-specific tariffs, with expectations of a 25% tariff before the mention of 200% [8] - The industry argues that tariffs will negatively impact patients and could result in drug shortages [9] Company Actions and Considerations - AstraZeneca is considering changing its registration to the US [10] - All European-based companies are emphasizing their commitment to the US and manufacturing in the US [10]