Long Data Commercial Agreements have greatly protected the pharmaceutical industry of tariffs, but the objective of President Donald Trump to return manufacturing to the United States has put the industry in the sight of the administration. Trump first raised the idea of imposing tariffs of up to 25% on imported pharmaceutical products in mid -February. Since then, he has repeated the idea and hinted that the details would arrive in early April. Now, however, it is not clear if an update will be presented on Wednesday, when many expect reciprocal tariffs, or if a drug ad is further. If tariffs are implemented, it will be a great change for the industry. An agreement of the World Trade Organization of 1994 eliminated the levies on a complete strip of pharmaceutical products and the substances used to do them. This resulted in companies that seek a series of commercial strategies aimed at reducing tax rates. “This is largely due to the low tax rates in these countries,” said Wells Fargo analyst Mohit Bansal. “These companies pay lower general taxes due to these manufacturing operations already [intellectual property] It is also domiciled in these countries, further reducing taxes. “Ireland has been a great beneficiary of this practice, and that has not been lost in Trump. Meeting with Michéal Martin, the Irish prime minister, in an event of the day of San Patricio at the White House in mid -March, Trump said the Irish were” intelligent people. ” You took our pharmaceutical companies and other companies. … This beautiful island of 5 million people has the entire US pharmaceutical industry. Uu. In its experts, “Trump said.” Substimated risks “The Leadck Leadark Partners David Risinger analyst warned his clients on Sunday that the tariff risks for the industry are” underestimated. “Although corporations can make adjustments to mitigate the negative impact of the rates, they could take some time given the time given the complexities of global strategies and supply of the supply and uncertainty incentive. Analysts Warn that it is difficult to fuly asses The Tariff Risks Based On The Available Information. However, Bernstein Analysts Led By Courtney Breen Did Try To Connect the Dots Based On Manufacturing Locations, Revenue, Cost of Goods Sold, Ocean Shipping Data, Tax Rate Guidance and Other Data, And Expects That Merck, Abbvie, Amgen and Pfizer Are Among The Companies Risks MRK YTD Mountain Merck Shares year to date Breen expects Merck and Abbvie to have more at stake due to their import volume and the probability that tariffs result in a higher cost base. Bernstein qualifies the market performance, the equivalent of a neutral opinion or opinion. Jefferies analyst Michael Yee called Amgen and Biogen to have the greatest exhibition in his coverage universe. “AMGN has manufacturing operations in Ireland and Singapore, resulting in a benefit at its effective tax rate,” Yee said. “BIIB also has a benefit for its effective -8% tax rate due to taxes on foreign profits.” AMGN YTD Mountain Amgen shares year to date VerTex and Gilead would have less exposure to higher rates, he said. The two companies have most of their intellectual property, or IP, domiciled in the United States, at a higher tax rate, according to analysts. Both actions have enjoyed a strong career. The couple increases more than 20% to date. While most analysts qualify the vertex a purchase, the average price objective suggests an increase of only 3%, according to LSEG. Gilead's actions can also be completely valued, according to the analyst's price objectives. The average objective suggests that actions could fall by 1%, from the end of Monday. Investors do not necessarily avoid shares that seem more at risk of policy changes. Amgen's shares have surpassed the market, with a gain of just under 20% so far this year, while Abbvie has increased approximately 18% until Monday. But both Biogen and Merck have dropped 10% each during the same period. The 'prevalent cross -border movement' Geoff Meacham, Citigroup analyst that covers the pharmaceutical industry of great capitalization, does not expect to see a huge impact on any company. His analysis showed that eight of the 12 companies he covers has manufacturing in Ireland. “Hopyly, the global manufacturing supply chain is highly leveraged with the prevailing cross -border movement,” Meacham said. He created a table that shows the amount of income that companies generate in different geographies, but warned that it is unlikely to accurately portray the net impact “of changes in commercial policy. This is because other details will influence calculations, analysts say. “The key questions are exactly what tariffs would apply; assuming that they would be in the importance of low -cost drug substance, the effects would probably be given to the very high gross margins throughout the space, although the tariff RBC Capital Analysts, led by Brahams. “In general terms, companies with the most IP and MANUFACTURE EM and manufacture would be more exposed.” The JPMorgan Us Biopharma research team echoed this. “On a simplistic level, the sector [cost of goods sold] Average of ~ 20% of sales and ~ 65% of sales are generated in the USA.; If tariffs are somewhat linked to real manufacturing expenses, they should be inherently manageable to the sector, “analysts led by Chris Schott wrote in a research note. A gradual approach on Tuesday, Reuters, said that the pharmaceutical industry is pressing any rate that is gradually applied. The administration. The production of return to the US Known as “reinforcement”, it may not be economical for all companies and products, especially low margin medications. Partners. Uncertain markets? Get an advantage with CNBC Pro Live, an exclusive and inaugural event in the historic New York Stock Exchange. In the current dynamic financial panorama, access to expert ideas is essential. As a subscriber of CNBC Pro, we invite you to join us for our first exclusive CNBC Pro Live event in the NYSE iconic on Thursday, June 12. You will also have the opportunity to establish contacts with experts in CNBC, talent and other professional subscribers during an exciting cocktail hour in the legendary commercial floor. Tickets are limited!
