Richard Saynor, CEO of Sandoz, expressed concerns during an interview with CNBC regarding President Trump's proposed tariffs on imported generic drugs, which could reach up to 200% by 2029. He emphasized that patients would ultimately bear the financial burden of these tariffs, as manufacturers would either increase prices or cease supplying certain medications.
Currently, generics account for about 90% of prescriptions in the U.S., but they represent a smaller share of overall drug spending due to their lower prices. Sandoz, which generates roughly 25% of its revenue in North America, is positioning itself to capitalize on a wave of patent expirations, aiming to double its net sales by 2035 and expand its biosimilars portfolio significantly.
Analysts have mixed views on Sandoz's targets, with some noting that the 2035 goals are ambitious, particularly in light of upcoming biosimilar launches. The company also sees potential in the GLP-1 drug market, which could yield significant revenue, although the exact figures remain uncertain.
Overall, the proposed tariffs and Sandoz's strategic plans underscore the evolving landscape of the pharmaceutical industry and the challenges posed by regulatory changes