Ozempic, Wegovy and other weight loss drugs were seized at the international postal facility at JFK Airport.
CNBC
Copenhagen, Denmark – The European pharmaceutical sector is hampering the potential impact of US tariffs as a desire for an industry-wide exemption by US President Donald Trump Fade.
The pharmaceutical industry has previously been exempt from trade collection, but Trump confirmed last week that he will soon impose tariffs on the sector.
Drugmakers are currently lobbying the president for a phased approach to import obligations to the US, Reuters reported Tuesday, citing four sources familiar with the discussion. Sources said the taxation may not be announced Wednesday, but it is likely inevitable.
The gradually implementing tariffs in the sector will reduce immediate financial hits and allow businesses time to relocate manufacturing nations. Nevertheless, some companies warn that the lack of clarity is already having a negative impact.
“What’s more important to us is not just the impact of tariffs, but the impact it has on the market,” Ester Baiget, CEO of Danish biotechnology company Novonesis, said on CNBC Tuesday.
“When we bring tariffs, promote uncertainty, we will pause, suspend innovation, post launches, suspend investments,” he said, pulling out roughly 30% of sales from the US, but also boosting the domestic manufacturing presence.
Denmark is one of Europe’s largest pharmaceutical and biotech hubs, with companies such as Wegovy-Maker Novo Nordisk and vaccine producer Bavaria Nordic. Both have been exposed to the US.
Novo Nordisk’s chairman told CNBC last week that the company had not speculated ahead of Trump’s tariff announcements and instead focused on staying flexible.
“It doesn’t make much sense to speculate,” Chairman Helju Rand told CNBC about a bystander at the Danish drug giant’s annual meeting. “We’re focusing on lasers on what can impact it.”
Still, questions about how tariffs affect Novo’s highly popular obesity and diabetes treatment sales are being asked about their impact on US rivals and Zepbound makers. Eli Lily. Lund is not forced to sell weight loss drugs derived from US plants.
‘no. One question about investor mind
The tariff threat also adds to uncertainty within the investment environment. Emily Field, head of European Pharmaceutical Research at Barclays, spoke to CNBC Monday, citing tariffs as “the number one question about the investor’s mind.”
Danish Minister of Industry, Business and Finance Morten Bozkov told CNBC on Tuesday that he is in greater contact with the country’s pharmaceutical industry and businesses about the potential impact of tariffs on a small export-heavy economy.
“Of course we are in close dialogue with them,” Bozkov said. “It’s our job to discuss them about how the world is changing. Many of them are world-leading companies, so it’s our job to help us see the market perspective in the future,” he added.
However, he pointed out that it is unclear whether the Trump administration will be persuaded to be reflected in protectionist policies or whether it will be able to create allowances for certain sectors.
Meanwhile, for companies like Novonesis, Baiget said it is the issue of watching events “very closely” and preparing actions when necessary.
“There’s a lot of volatility and a lot of trends moving quickly,” she said. “It’s important for us to separate and we’ll learn how to buffer some of them.”
