Trump 200% threatens to raise drug prices, margins hit

The pharmaceutical industry is shouting with the planning of the situation as US President Donald Trump’s 200% rate proposal is threatening to raise the price of the drug and tear the corporate profit margin.

President Once again alerted warning That much-awaited industry-wide rates will be announced on Tuesday “Too soon” After the administration started the so -called 232 Checking In the area in April.

Trump suggested that the fee would not be implemented immediately, but it will get a Grace period for “about a year and a half, to come in a year and a half.”

Yet analysts have warned that such rates – even delayed – will have a harmful effect on drug prices and profits margin.

In a letter on Wednesday, Barkey wrote, “The rate of 5% will increase the cost of production, disruption of profit margin and risk supply chains, which will provide high rates of drugs and higher rates to American consumers,” Barkey wrote in a letter on Wednesday.

UBS analysts mentioned the “significant negative effects” on the margin, where the goods outside the United States are created, in the meantime, the patients can be “destructive”, said Afsneh, the founder and Chief Executive Officer of the Investment Firm Rockcruk Group in terms of cost of approximately 100%.

“This would be a potentially destructive for every person because we need those pharmaceuticals and it takes a long time for those companies to be ready in the United States,” Beshlos told CNBC’s “Close Bell”.

It is estimated that only 25% of the prices of American drugs on pharmaceutical imports will increase the prices of American drugs by about $ 2 billion a year, while domestic prices will rise by 5.9%. Accordingly Research from the Industry Trade Group Pharmaceutical Research and Manufacturers of the US (PhRMA), who on Wednesday accepted the President’s proposals as “adverse” to health results.

In response, Global Pharma Companies – including Novartis, Sanofi And Roche And US-headquarters Ely Lily And Johnson and Johnson – In the United States has committed a commitment to invest a large amount of money

UBS dubbed the administration’s Tariff Grace period as a “inadequate time” to transfer companies to their production position over a period of 12 to 18 months.

“We will usually think of 4 to 5 years that the commercial product is a timeline to move the product to a new site,” the analyst wrote.

The industry is waiting for more details at the end of this month when the final section 232 investigation report is due. But in the meantime, companies have no choice but to plan different possible results.

Roche’s spokesman said the company was “closely monitoring the situation” and “lawyers” and “lawyers” and “more equitable and affordable health care institutions”.

The Swiss Pharmaceutical Giant had earlier said that Trump’s drug prices order could endanger the US investment. However, he mentioned on Wednesday that his proposed funds would continue to make its production step in the United States

Bair has said that they are observing “various rate announcements” and its supply chain has been focused on securing chains and “reducing any possible consequences.”

Meanwhile, Novartis said he was working with the partners of the American Administration and Trade Organization, and his planned American investment did not “any changes”.

Astrajenka and Sanofi did not immediately respond to the request of CNBC, but Novo Nordisk refused to comment in his pre-birth period.

Had previously discovered by the pharmaceutical industry Sector-wide cores-out From rates. But as this hope has diminished, the potential trade deal is being pointed out as a potential buffer.

If the US-UK trade agreement was announced last month, while rare, States On both sides of the “Section 232 examination,” the UK will talk about priority treatment for pharmaceuticals and pharmaceutical components. “

Pharma companies in Switzerland and the European Union can target the same carving in their potential deals. Nevertheless, without clarity, there are question marks for companies and customers.

ING Chief Economist Burt Kolzen on Wednesday told CNBC’s “Europe Early Edition”, “The regions of this uncertainty will affect and will not have a constant effect.