NOVO NORDISK (NVO) is not concerned about the ongoing US trade war, and 25%of tariffs will be implemented for pharmaceutical companies next week.
Lars Jørgensen CEO said to journalists on Thursday, “I’m not worried about tariffs for Novo Nordisk.”
He pointed out that the company already has a globalized setting for manufacturing near the market where the product is sold, including the active pharmaceutical ingredient (API), which is the basic ingredient of drug formula. APIs are mainly produced in China, but NOVO produces APIs only in the United States and Denmark, he said.
Jørgensen said, “We have products that move across the border and actually reduce the products in different ways in a world with a lot of tariffs and, of course, can reduce cross -borders.”
He added that the US market relies heavily on general pharmaceuticals than brand products that Novo Nordes do not sell.
Close: March 7 4:00:02 EST
Competitor ELI Lilly (Lly) recently announced $ 27 billion investments in US manufacturing, including APIs. It is not known yet.
LILLY has recently built a new manufacturing site in North Carolina to produce GLP-1 injectable pen. NOVO is already in North Carolina and has an API production site worth $ 2.5 billion and is near the next stage of the supply chain ($ 4.1 billion filled factory).
The process of the API helps to grow biological products using yeast fermentation, and it is a cost -effective investment, Jørgensen includes a large tank that continues to produce ingredients in the process of API, Jørgensen said.
“It’s given that you can’t spread small facilities all over the world. Because you won’t reach the same scale, I’m very comfortable for that settings and it’s very comfortable to supply the US market in that setting.”
“I’m not especially worried about the impact of tariffs on Novo Nordic.”
Anjalee Kachmli Yahoo Finance’s senior health journalists deal with everything that deals with pharmaceuticals, insurance, nursing services, digital health, PBM and health policy and politics. Of course, GLP-1 and tariffs are included. Follow Anjalee in Social Media Platform X, LinkedIn and BlueSky. @anjkhem.
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