Anshul Mangal
president
Project perm
The United States is currently discovering itself in the middle of an uncertain trade war with various countries. The biggest challenge facing the industry is uncertainty. The current administration has enacted tariffs on various foreign countries and has withdrawn or delayed them. It is not clear which tariffs will be effective or effective. Anshul Mangal, chairman of Project Farma, said Pharmaceutical executive It’s about the situation and how pharmaceutical companies can strategize the strategy around them.
Pharmaceutical Administration: How can tariffs affect bio pharmaceutical manufacturing?
Anshul Mangal: Recent tariffs imposed by the Trump administration, including 25% of mandatory pharmaceutical imports, can greatly affect bio pharmaceutical manufacturing by increasing production costs, interfering with global supply chains, and re -evaluating manufacturing positions. Much of the US pharmaceutical supply chain is international production, especially in the API, China and India supply the majority of these components. The US imports of Chinese APIs have increased by about 24% since 2020, and all interruptions can increase drug costs. General pharmaceutical manufacturers can have the most difficulty because they can limit their ability to absorb costs, leading to lack of drugs or price hikes. Analysts have a big impact on medical devices, as estimated that about 75%of the hardware sold in the United States have been manufactured outside the country. Groups such as the American Hospital Association (AHA) and ADVAMED are lobbying for tariff exemptions, but cite the risk of chain supply of surgical tools, diagnostic equipment and hospital necessities, but are not exempt. Re -manufacturing pharmaceutical manufacturing in the United States presents its own challenge. High labor costs, long timelines and regulatory considerations are difficult and rarely possible.
PE: Big Pharma vs. in this new environment What is the main consideration of the Small BIOTECH company?
Mangal: Large -scale pharmaceutical companies and small biotechnology companies are facing different challenges as they explore evolving landscaping formed by tariffs and changing manufacturing policies. Big Pharma, which has a wide range of global infrastructure and strong financial reserves, can take advantage of its influence to absorb short -term tariffs and negotiate a favorable policy. Companies that already have important beings in the US manufacturing industry, such as ELI Lilly and PFIZER, can easily pivot by increasing domestic production. This has been proven by the plan to invest $ 27 billion in Lilly’s recent four new US manufacturing plants.
Small biotechnology companies operated by capital restricted capital may have difficulty in increasing costs if the supply chain depends on overseas production. Biotechnology, which depends on CMOs in areas such as China and India, affects the ability to ultimately expand by finding alternative suppliers or absorbing higher production costs in the face of confusion. Small and early stage companies may need to shift R & D focus or explore alternative funding strategies and cope with higher costs. Big Pharma can wait until the dust is resolved before making a major capital investment, but small biotechnology companies should be more strategic and active in securing supply chain risk management and stable manufacturing partners.
PE: How can the new administration affect the US vs. electronic manufacturing decision?
Mangal: The Trump administration’s aggressive tariff policy and the emphasis on manufacturing reconciliation are already calling for a change in investment decisions, in contrast to ELI LILLY’s $ 200 million expansion of SUZHOUs in contrast to US $ 27 billion promises. MERCK also opened 225,000 square feet of 225,000 square feet in North Carolina and plans to spend $ 8 for US Capital Investment by 2028.
Retaliation tariffs can more complicated the decision of multinational biopharmaceutical companies. The recent ban on Illumina’s DNA sequencers on US tariffs emphasizes the risk of increasing trade tensions, leading to stopping the supply chain and allowing the company to diversify manufacturing footprints. The corporate tax policy remains a key element, and LILLY has explicitly tied the previous US investment to tax reductions in the Trump era, suggesting that if the administration expands or expands tax incentives, more companies can provide incentives to increase domestic manufacturing. However, the FDA approval and manufacturing timeline remain as a bottleneck of rapid reconstruction.
If the administration extends corporate tax incentives or simplifies regulatory approval, you can see greater investment and efforts to reconstruct US bio pharmaceutical manufacturing. However, if trade tensions are higher, especially if China expands retaliation beyond the ban on Illumina, the biotechnology company may interfere with clinical trials and innovative pipes in the face of new barriers in global collaboration. Ultimately, the tariffs can encourage US -based production, but the complexity of global trade, supply chain and operating costs will continue to form long -term investment decisions.
