A worker is working on a drug production line in the production workshop of a pharmaceutical company in Meishan, China, on January 30, 2024.
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A version of this article appeared for the first time in the Healthy Bulletin returns from CNBC, which brings the latest medical care news directly to its entrance tray. Subscribe here To receive future editions.
Pharma is at the limit, and for a good reason.
Drug manufacturers are preparing for the effects of the undulation of the planned tariffs of President Donald Trump on the pharmaceutical products imported to the US. UU. It is still not clear how exactly those encumbrances will be seen or when they will be announced.
But the Trump administration revealed on Monday that it had opened a so -called Section 232 investigation on how the importation of certain pharmaceutical products affects national security, a movement widely seen as a prelude to initiate tariffs on drugs. During the weekend, the Secretary of Commerce Howard Lutnick also said that these tasks will come “in next month or two.”
As we started the profit season, we are seeing close calls to investors and analysts to see how drug manufacturers talk about tariffs and their potential impact on their businesses.
Until now, two of the largest pharmaceutical companies, Eli Lilly and Johnson and Johnson – They have retreated Trump's tariff threat. Those are the same two drug manufacturers that announced new multimillion -dollar investments in the manufacture of the United States in the last two months to build good will with the president.
J & J was the last company to comment on the tariffs during his earning call on Tuesday, although some executives seemed to have different views on the levies.
In an interview with CNBC, the company's financial director Joe Wolk said Trump “does not want to hurt anyone” with his tariffs. He added that the administration probe is likely to show that most medications sent to the US are cheaper generic, not brand therapies sold by J & J.
“We and our partners are more in high science … that's where we have a differentiation,” Wolk said. “It is not only good for your business, but it provides the United States with a competitive advantage in terms of leading the world in life sciences.”
Some analysts were satisfied with Wolk's similar comments to Bloomberg on Tuesday.
J & J Management “Minimized rate risks this morning, which we consider an important positive development for the perception of the threat of [the company] And the Biofarma brand industry in general, “said Readink Partners David Risinger analyst on a note on Tuesday.
But the CEO of J & J, Joaquin Duato, echoed the warnings of health policy experts, who say that tariffs could increase the costs of medicines for patients and exacerbate the shortage of medicines in the United States.
“There is a reason … why pharmaceutical rates are zero. It's because tariffs can create interruptions in the supply chain, which leads to shortage,” Duato said during a earning call on Tuesday. He added that favorable fiscal policies would be a more effective tool to boost American manufacturing capacity of medicines and medical devices.
Also on Tuesday, J & J It is mainly related to the company's medical device products, executives said in a profit call.
Duato's feeling is similar to that of Eli Lilly Dave Ricks CEO, who warned that tariffs could hinder research and industry development and hurt patients. He said that drug prices are essentially limited in Europe and the US, which means that the highest tariff costs would feel elsewhere.
Traditionally, there has been more freedom of pricing in the United States, but recent legislation, such as the Inflation Reduction Law, has introduced some negotiation of prices or limits for medications covered by Medicare.
“We cannot violate those agreements, so we have to eat the cost of the rates and make compensation within our own companies,” Ricks told BBC earlier this month, just over a month after the company announced $ 27 billion in new national manufacturing.
“Usually, that will be in the reduction of personnel or research and development, and I predict that R&D will be the first. That is a disappointing result,” Ricks said.
We will continue following Pharma's comment in this earning season, so be attentive.
Do not hesitate to send any advice, suggestion, stories ideas and data to Annika in [email protected].
More on rates: the division into medical equipment
Medtech and Medical device manufacturers are struggling to mitigate the impact of the new Trump administration rates in China, but J & J has already increased the alarm that the new levies will represent a head wind of $ 400 million for its orthopedic unit and heart devices.
The Medtech commercial groups are pressing the Trump administration for an exemption from medical goods, arguing that the duties will increase the prices of the nation's health system and the government itself through higher care costs in Medicare and Medicaid.
But manufacturers of protective medical equipment are actually encouraging new rates, which are being imposed in addition to existing taxes. For needles and syringes of China, that is equivalent to an import cost of 245%.
After years of Chinese PPE manufacturers financed by the state that undermined them in the price, the new tariffs could help manufacturers of manufacturers to level the playing field at home, told me the president of Altor Safety, based in New York. He says that producers could give the opportunity to take participation from China, and with higher production volumes, they could actually reduce prices.
Do not hesitate to send any advice, suggestion, stories ideas and data to Bertha in [email protected].
The latest in Medical Care Technology: DEXCOM obtains the approval of the FDA for its 15 -day 15 -day G7 day G7 days G7 day monitoring system
The Dexcom logo is seen on the screen of a smartphone and in the background.
Pavlo Gonchanche | Soup images | LIGHTROCKET | Getty images
The United States Food and Food Administration has eliminated the Dexcom G7 glucose monitoring system for use by adults with all kinds of diabetes, the company announced in a statement.
A continuous glucose monitor, or a CGM, is a small sensor that crosses the skin and sends glucose readings in real time to an application. Glucose is a type of sugar that people get from food, and is the main source of energy from our bodies.
For diabetes patients, glucose management is crucial to prevent and delay serious health problems, according to disease control and prevention centers.
Dexcom sells a range of CGM products, including a friendly consumer sensor called Stelo that the company launched in August. But its last authorization of the FDA reflects its continuous impulse to expand the market share within its central user base: patients with diabetes.
The highest update of the new Dexcom G7 system is its widespread time. The new G7 sensor will last 15.5 days users, including a 12 -hour grace period that gives users a buffer to change their sensor. The previous generation lasted 10.5 days, including the same 12 -hour grace period.
Dexcom competes with other important medical devices such as Abbott and Medtronic that sell CGMS. ABBOTT CGMS can be used for up to 15 days, while Medtronic can be used for up to 7 days, according to companies's websites.
Dexcom's updated G7 is also a bit more precise than its previous model, the company said. However, the new device has only been approved for use in adults, while the previous generation can be used by patients over two years.
“This milestone establishes a new standard in CGM and is a testimony of our continuous leadership in glucose biosensions,” said Jake Leach, director of Operations of Dexcom, in a statement.
The updated G7 sensor will be available in the second half of the year.
After a Rocky 2024 fogged by a restructuring of his sales and lower income by user team, Dexcom's shares lost about 37% of their value. The shares have fallen more than 10% this year, while Nasdaq has fallen more than 14% during the same period.
Piper Sandler analysts said that the last approval of the FDA of Dexcom is a “significant catalyst” for the company. Depending on how President Donald Trump's tariffs end up affecting Malaysia, where Dexcom manufactures some of their devices, analysts said the 15 -day sensor could lead to a “significant elevator” on the margins and gross income next year.
“This product should allow DXCM to compete more effectively with its great competitor in space, as it closes the wear gap,” analysts wrote in a note last week.
Readink Partners analysts had a more warm version of the ad, calling approval as “incremental positive” for Dexcom.
Read Dexcom's full announcement.
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