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SEIZED OZEMPIC, WEGOVY AND OTHER WEIGHT LOSS DRUGS AT JFK AIRPORT’S INTERNATIONAL MAIL FACILITY.
CNBC
COPENHAGEN, Denmark — The European pharmaceutical industry is currently on alert as the prospect of tariffs being imposed by the U.S. government looms. Following the announcement by President Donald Trump regarding the potential for trade levies on the sector, companies are bracing for change.
Historically, the pharmaceutical industry has enjoyed exemptions from such tariffs, but this exemption appears to be ending. Reports indicate that the U.S. pharmaceutical companies are actively advocating for a gradual implementation of these tariffs to mitigate the financial impact on their operations. Sources familiar with the situation noted that the announcement of these tariffs may not come immediately, but seems unavoidable.
A phased approach to these tariffs could provide a buffer for companies, allowing them time to adjust their manufacturing processes to align with the new regulations. However, many firms have expressed concerns about the existing uncertainty impacting their operations negatively.
“What matters to us is not just the tariffs,” said Ester Baiget, CEO of Danish biopharmaceutical firm Novonesis. “The uncertainty they create can halt progress. This affects innovation, product launches, and investment decisions,” she explained, noting that around 30% of her company’s revenue comes from the U.S. market, while they are also enhancing their manufacturing capabilities domestically.
Denmark, recognized as a significant player in the pharmaceutical and biotech realms, is home to major companies such as Novo Nordisk, known for its weight-loss medication Wegovy, and Bavarian Nordic, a vaccine producer. Both companies have substantial dependencies on the U.S. market.
Novo Nordisk’s chairman, Helge Lund, emphasized a cautious but flexible approach, avoiding speculation about the impact of the tariffs ahead of official announcements. “We’re focused on what we can control,” Lund stated during the company’s Annual General Meeting, maintaining that the firm’s manufacturing infrastructure in the U.S. is considerable.
Investor Concerns and Market Uncertainty
The prospect of tariffs is also a pressing issue for investors. Emily Field, head of European pharmaceuticals research at Barclays, characterized the tariffs as the top concern among investors in the sector.
Morten Bødskov, Denmark’s Minister for Industry, Business, and Financial Affairs, conveyed that he is actively engaging with the pharmaceutical industry and broader corporate community regarding the potential repercussions of tariffs on Denmark’s export-driven economy. “We maintain close communication with leading companies to navigate the changing landscape and foresee emerging market opportunities,” he remarked.
Nonetheless, Bødskov acknowledged the difficulty in gauging whether the Trump administration would reconsider its protectionist stance or provide exemptions for particular industries.
For firms like Novonesis, Baiget reiterated the need for vigilance in monitoring the situation. “There’s considerable volatility and rapid market changes,” she concluded. “It’s crucial for us to adapt swiftly and develop strategies to offset any adverse impacts.”
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