Healthcare stocks are feeling pressure as companies within the industry face push-back on pricing and also pressure from the White House on reshoring efforts.
Shares in several European and Asian makers of generic medicines fell after President Trump said the U.S. would place tariffs on such drugs starting in August 2028. Trump wrote on his Truth Social platform that he would give two years for drugmakers to move plants to the U.S. before introducing the levies, starting at 100% from August 2028 for one year before increasing them to 200%. In response, the Indian Pharmaceutical Alliance, a trade body, said tariffs alone wouldn't lead to sustainable onshoring to the U.S. of generic-medicine production, and that a set of reforms would be needed to attract major new domestic investments.
Sandoz Group said it would engage with U.S. policymakers after President Trump announced a 100% tariff on generic drugs from 2028, but that it is too early to assess how the plan will affect its manufacturing or investments. The Swiss generic-drug maker said that further details on the scope and implementation of the measure are still required before it can assess its potential implications.
Write to Patrick Sheridan at patrick.sheridan@wsj.com
