"The new tariffs could also spark a wave of industry announcements about domestic manufacturing investments. Companies will be exempt from the tariff altogether if they commit to onshore manufacturing and enter into a 'most-favored nation' agreement."
"The tariffs appear to apply to major pharma manufacturing hubs like China, Singapore and India, but they could also encourage more manufacturers with operations there to cut deals with the administration."
"The tariffs apply only to branded drugs and their active ingredients. The White House said tariffs on lower-cost generic drugs and biosimilars would be reassessed in a year."
Thirteen drug companies entered 'most-favored nation' pricing deals with the White House due to looming tariffs. More companies may follow to avoid tariffs. A lower tariff rate of 20% applies to companies committing to onshore manufacturing. Those entering 'most-favored nation' agreements will be exempt from tariffs. The tariffs target branded drugs and their active ingredients, with reassessment for generics in a year. The administration anticipates major pharmaceutical companies will establish manufacturing in the U.S.
Read at Axios
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