Tariff Trouble: US-China Spat Impacts Pharma Sector

The escalating US-China trade war is affecting the pharmaceutical sector, as tariff increases on US-made drugs strain drugmakers' costs. Counterfeit versions of Novo Nordisk’s Ozempic surfaced in the US, prompting investigations. US is also exploring tariffs on pharmaceuticals and semiconductors citing national security concerns.

The escalating trade war between the United States and China is taking a toll on the pharmaceutical sector. According to Chinese regulatory data reviewed by Reuters, Western medicines that treat diseases like cancer and diabetes are now caught in the crossfire. China's decision to increase levies on US imports to 125% comes as a direct response to President Donald Trump's tariffs targeting the world's second-largest economy.

The US pharmaceutical landscape faces further challenges with the discovery of counterfeit units of Novo Nordisk's diabetes drug Ozempic within unauthorized supply chains. The US health regulator has since seized these counterfeit injections, signaling the beginning of an investigation. Additionally, the Trump administration is scrutinizing imports of pharmaceuticals and semiconductors, setting the stage for possible tariffs on these sectors in an effort to curb foreign dependency.

Swiss drug manufacturer Sandoz is also in the legal spotlight, having filed an antitrust lawsuit against Amgen in the US, accusing it of market dominance through unethical patent purchases for its arthritis drug, Enbrel. Meanwhile, Chinese biotech firm Duality Biotherapeutics enjoyed a successful entry on the Hong Kong stock market, doubling its share price in its debut amid reactions to US tariff announcements.

(With inputs from agencies.)