Swiss generic drugmaker Sandoz has said it would continue discussions with policymakers after US President Donald Trump threatened steep tariffs unless drugmakers manufacture medicines in the US.
Trump said in a post on X on Tuesday (21) that generic drugmakers will have to manufacture medicines for the US locally or be hit with a 100% tariff from August 2028 followed by a 200% tariff starting the year after.
More than 90% of medicines sold in the US are generics, according to the US Food and Drug Administration.
"We share the goal of improving affordability and access to medicines in the United States," Sandoz said in a statement on Wednesday (22). It added it would continue discussions with policymakers on how to best achieve this, as first reported by the Wall Street Journal.
Sandoz said in 2024 that it would close its only US manufacturing site on Long Island, New York, around the end of 2026. It said it was too early to assess any implications for manufacturing operations or future investment decisions.
Vontobel analyst Stefan Schneider said the US government is aiming to reverse the shift of generic drug production to lower-cost countries, although bringing manufacturing back would likely raise generic drug prices.
He added that any new rules would predominantly affect China and India, where most generic drugs are manufactured, but would also weigh on Sandoz, with around 22% of its sales in North America and little production there.
