Swiss pharmaceutical giants Roche and Novartis have accelerated their investments in the United States after President Donald Trump announced a 100% tariff on drugs produced outside the country, effective October 1.
Roche Highlights Groundbreaking in North Carolina
Roche recalled that last month it broke ground through its Genentech unit on a new manufacturing facility in North Carolina. The company also reiterated its commitment to allocate $50 billion for production and R&D investments in the U.S.
Novartis to Launch Five New Projects by Year-End
Novartis, meanwhile, confirmed that it is moving ahead with the $23 billion investment plan it announced earlier this year. The company said construction has already begun on one site, and that work on five additional facilities will start before the end of 2025.
Impact of Trump’s 100% Tariff
Trump’s decision means that branded and patented drugs manufactured outside the U.S. will be subject to steep tariffs. However, thanks to their large-scale projects in America, Roche and Novartis are expected to avoid the impact of the new measure.
Positive Market Reaction
Markets responded positively to the announcements. Shares of Roche and Novartis recorded modest gains on Friday. Analysts said that the U.S. production requirement is pushing major pharmaceutical companies to accelerate investments, which may ultimately limit the scope of the tariff.
The Swiss government stated that it is analyzing the potential effects of the tariff decision, though details remain unclear.
Source: Patronlar Dünyası/ Prepared by: İlayda Gök