Swiss Pharmaceuticals React to Trump's 39% Tariffs

Regulatory & Policy Impacts - Swiss pharmaceuticals face uncertainty due to tariffs sentiment and drug pricing policies [1] - A 39% impact is not immediate, providing a short stay of execution, but manufacturing relocation to the US is anticipated to appease US sentiment [2] - Swiss pharmaceuticals contribute significantly to the trade deficit between Switzerland and the EU, requiring negotiation [2] - The most favored nation drug pricing threat impacts Swiss pharmaceutical companies [3] - Previous attempts at most favored nation drug pricing were stopped by courts due to procedural technicalities [4] - Drug makers are keen to negotiate direct-to-patient drug pricing proposals, potentially benefiting both drugmakers and the US administration [5] Pricing & Market Strategy - The ability to cut drug prices depends on the scope of the cuts, with Medicaid being more manageable than across-the-board cuts [6] - The US administration aims for Europeans to pay more for drugs, seeking to maintain pharmaceutical company profits [7] - Relocating consumer base is a potential strategy, but could negatively impact patients' access to drugs [8] - Pharmaceutical companies may avoid launching drugs in Europe if forced to raise prices unsustainably, limiting patient access to innovative medicines [9]