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Sandoz CEO Warns Trump's Generic Drug Tariffs Will Burden U.S. Patients
Health Technology · Pharmaceuticals: Generic · cnbc · 2026-09-08
SDZ-CH, NVO, NVO, NVS
Sandoz CEO Richard Saynor warns that proposed U.S. tariffs on generic medicines could force manufacturers to hike prices or halt supply, impacting millions of patients.
What Happened
Tariff Impact on Healthcare: Sandoz CEO Richard Saynor cautioned that proposed U.S. tariffs on generic drugs would ultimately be passed down to consumers through higher prices or supply shortages. He emphasized that manufacturers cannot sustain production at a loss, potentially forcing them to exit the market if the 100% to 200% tariff plan is implemented by 2028.
Market Dynamics and Manufacturing: While generic drugs represent roughly 90% of U.S. prescriptions, the underlying active ingredients are largely produced abroad. The administration's proposal aims to incentivize domestic manufacturing, but industry leaders argue that the current global supply chain structure makes such a transition difficult without disrupting patient access.
Growth Strategy and Revenue Targets: Despite the regulatory uncertainty, Sandoz is aggressively pursuing growth, aiming to more than double its net sales by 2035. The company plans to capitalize on a wave of patent expirations for branded drugs, specifically targeting the immunology and oncology sectors to boost its core profit margins above 30%.
Biosimilars and GLP-1 Opportunities: Sandoz is expanding its focus on complex biosimilars, intending to cover 80% of the value of biologics losing patent protection by 2035. Additionally, the firm sees significant potential in the GLP-1 market, with recent generic semaglutide approvals in Brazil signaling a move toward capturing market share in high-demand weight-loss and diabetes treatments.