“We’re very confident and committed in betting big on the US”Outgoing GSK CEO Emma Walmsley says Pfizer’s drug-pricing agreement with President Trump is a "step forward"BBGWomenMoneyPower https://t.co/D71n0UVSBN https://t.co/LCLyTIsXKC ...

Industry Outlook - Making drugs in America is unlikely to keep costs low [1] - Drug production will still depend on imports of active ingredients [1] - The industry could be vulnerable to further protectionism [1]

Drug Pricing Pressures & Industry Response - Pharma companies are expected to submit plans to the Trump administration for voluntarily lowering drug prices [1] - Most companies are in talks with the administration but haven't made concrete promises yet [1] - The industry's main lobbying group will create a new direct-to-consumer (DTC) website aggregating medicines from member companies at lower prices [4] - HHS sent a proposed drug pricing pilot program to the White House for review [4] Strategies to Lower Drug Costs - Some companies agree that other countries should pay more for drugs [2] - Bristol Myers Squibb is making its psoriasis drug to tick 2 available at more than 80% below the list price [3] - Setting up a DTC website is one way to cut prices, for example, Bristol drug can cut the price by 80% [6] Challenges & Perspectives - Companies can't easily raise prices in places like Europe due to existing controls [2][3] - Even with price cuts, some drugs can still cost consumers $16,000 per year out of pocket [6] - Companies argue that insurance needs to be fixed, with better drug coverage and lower co-pays [7] - Drug companies are trying to shift blame to the middleman [5]

Tariff Impact & Industry Response - President Trump announced a potential 100% tariff on pharmaceutical products entering the US starting October 1st, with exemptions for the EU and Japan honoring the existing 15% cap [1] - The market initially reacted positively, viewing the announcement as a potential "d-risking event" after uncertainty since the initial tariff discussions in April [2][3] - Companies that have already invested in US manufacturing may benefit, while those that haven't may face pressure to invest or potentially see price increases on imported drugs [3][5] Manufacturing & Investment - Many big pharma and biotech companies (including US and European firms) already have plans in place to expand US manufacturing, potentially accelerated due to the administration's focus [5][7] - The industry has been publicly announcing plans to create more manufacturing in the US [4][5] - It's difficult to differentiate between pre-existing plans and new investments spurred by the tariff threat, but proof of new plant construction is expected [7][8] Generics & Spec Pharma - The generics and spec pharma industries, with potentially lower profit margins, may have less manufacturing in the US and could be more vulnerable [5]

Market Overview - The S&P 500 is attempting to hold the 6,600 level, which is significant as it is close to the 20-day moving average, a key support area since the tariff announcements [2][4] - Recent market activity indicates a rotation towards more defensive positioning, with profit-taking observed [4] Tariff Implications - The U.S. government is set to implement 100% tariffs on all branded prescription drugs, excluding generics, which may benefit companies like Eli Lilly and JNJ that are expanding manufacturing in the U.S. [6][8] - The pharmaceutical industry imported approximately $213 billion worth of prescription drugs in 2024, indicating a substantial impact from the new tariffs [9][10] - If generics are included in future tariff considerations, it could negatively affect both consumers and manufacturers, as generics are a significant volume driver for profitability [9] Industry-Specific Impacts - The furniture sector is facing 50% tariffs on kitchen cabinets and bathroom vanities, and 30% tariffs on upholstered furniture, primarily affecting imports from China and Vietnam [12][13] - Heavy-duty trucks are subject to 45% tariffs, which may not have an immediate impact due to a decline in demand over the past few years [14][15] TikTok Deal Developments - The Trump administration has approved a deal involving TikTok, with the entity valued at around $14 billion, significantly lower than market expectations [17][18] - The deal includes Oracle and aims to secure U.S. data and algorithms, which is seen as a significant achievement for the administration [16][18]

Trump’s plan to impose a 100% tariff on branded and patented drugs could sharply raise costs for pharmaceutical companies without US manufacturing capacity https://t.co/hl6fZpwnog ...

GSK and Eli Lilly are the latest multinational drugmakers to unveil plans to build more U.S. manufacturing plants and other operations, moves aimed partly at mitigating the threat of tariffs https://t.co/QnHi8SQKG1? ...

US prosecutors ask a judge to drop charges related to alleged fentanyl trafficking against an Indian pharmaceutical executive https://t.co/TNHWmC7mdz ...

Novo will slash 11% of staff globally as it fights to recover ground lost to obesity-drug rivals. Can the pharma giant answer its critics and keep the competition at bay?🎧 Bloomberg reporters took your questions in a Live Q&A. Listen back: https://t.co/spNxngJear ...

Merck is considering selling medicines directly to patients in the US, joining drugmakers seeking to bypass middlemen following President Trump’s demand for lower drug prices https://t.co/K3WobcCp51 ...