Health Care Likely To Get Burned By Tariffs On Mexico, Canada, China
Trade groups are urging the administration to consider the impact on patient care and are pushing for exemptions to the tariffs. Also in the news: Pfizer might move production to the U.S. to combat pharmaceutical tariffs.
Modern Healthcare:
Mexico, Canada Tariffs Hit Cardinal Health, Intuitive Surgical
Makers of a wide variety of medical products will feel the pain of tariffs imposed Tuesday by the Trump administration, and they are likely to pass those higher costs along to hospitals and other providers. The tariffs include 25% on imports from Canada and Mexico and an additional 10% tariff on imports from China. That follows two other tariffs imposed on Chinese goods, a 10% one last month and one in September that varied in scope. (Dubinsky, 3/4)
Modern Healthcare:
Tariffs, Medicaid Cuts Could Hurt Hospital Credit Ratings: Fitch
The Trump administration's cuts to federal agencies could negatively impact some healthcare companies' financial stability and spark more deal activity as businesses look for additional support. The future of Medicaid is top-of-mind, as proposed cuts loom large. Decreased reimbursements could have a materially negative impact on providers' credit ratings, especially organizations that have relied on supplemental payment programs, and create revenue challenges for payers as well, according to a Fitch Ratings report published last week. (Hudson, 3/4)
Bloomberg:
Gene-Sequencing Firm Oxford Nanopore Hit By US, China Turmoil
Gene-sequencing company Oxford Nanopore Technologies Plc’s shares plunged the most in more than a year as uncertainty around cuts to US research funding and the impact of a global trade war eclipsed the firm’s plans to forge ties with the pharmaceutical industry. The shares fell about 15% in London, the biggest intra-day decline since Jan. 9, 2024, after the company’s forecast for 2025 included warnings of possible cuts to research funding by the US National Institutes of Health. (Furlong, 3/4)
FiercePharma:
Pfizer Could Shift Overseas Production To US If Trump's Pharma Tariffs Take Hold, CEO Says
As biopharma players continue to parse out what the second Trump administration means for the industry, Pfizer CEO Albert Bourla, Ph.D., outlined one potential response by his company if pharmaceutical tariffs come into play. Pfizer’s local manufacturing setup is already well positioned in the U.S., and the New York-based drugmaker could bring additional resources into the country if the situation demands, Bourla said Monday at TD Cowen’s 45th annual healthcare conference in Boston. (Kansteiner, 3/3)
Stat:
To Fight U.S. Tariffs, Canada Should Suspend U.S. Drug Patents, Expert Says
Now that the Trump administration has imposed 25% tariffs on goods from Canada, the Canadian government is levying tariffs in return. But other measures are also being examined and one notion the Canadian government should consider is suspending patent rights held by U.S. companies, including pharmaceutical companies, according to Richard Gold, a professor of law and medicine at McGill University who specializes in intellectual property issues. (Silverman, 3/4)
The New York Times:
Trump Says Tariffs Will Stop When Opioid Deaths Fall. They’ve Already Fallen.
One month ago, President Trump agreed to delay tariffs on Canada and Mexico after the two countries agreed to help stem the flow of fentanyl into the United States. On Tuesday, the Trump administration imposed the tariffs anyway, saying that the countries had failed to do enough — and claiming that tariffs would be lifted only when drug deaths fall. But the administration has seemingly established an impossible standard. Real-time, national data on fentanyl overdose deaths does not exist, so there is no way to know whether Canada and Mexico were able to “adequately address the situation” since February, as the White House demanded. (Katz and Sanger-Katz, 3/4)
In other pharmaceutical developments —
Bloomberg:
Private Credit Lenders Look To Fund Walgreens Buyout By Sycamore
Private credit lenders are in talks to provide about $4.5 billion of debt to fund Sycamore Partners’ potential buyout of Walgreens Boots Alliance Inc. as part of a plan to split up the pharmacy retailer into separate businesses, according to a person with knowledge of the matter. HPS Investment Partners and Ares Management Corp. are among lenders vying to finance what would be one of the largest leveraged buyout debt deals to hit the market in more than a decade, said the person, who asked not to be identified discussing confidential information. (Schneider and Scigliuzzo, 3/4)
NPR:
Consumers Can Buy Weight-Loss Drug Zepbound From Eli Lilly If They Pay Cash
Every month, roughly 100,000 people buy Zepbound directly from Eli Lilly through its website. "It's about the size of a small city," says David Ricks, Eli Lilly's CEO. That's about 10% of the 1 million people who use the blockbuster obesity drug every month, though the numbers can vary, he says. (Lupkin, 3/5)
Stat:
FDA Scolds Drugmaker For Touting 'Misleading' Comparison With Generics
The Food and Drug Administration scolded a company for a promotional display that falsely claimed its brand-name medicine was more effective than generic versions, which is apparently the first time the agency office responsible for monitoring advertising has cited such an issue. (Silverman, 3/4)
FiercePharma:
Glenmark Issues Another Recall, This Time For 1.5M Bottles Of ADHD Drug Due To Impurities
Glenmark Pharma, an India-based drug manufacturer that has been the focal point of a spate of recalls in recent years, has issued another. This time, the product pull covers about 1.48 million bottles of the generic attention deficit hyperactivity disorder (ADHD) drug atomoxetine. (Keenan, 3/4)
