Trump’s executive order faces industry doubts
From Yahoo Finance: 2025-05-16 10:18:00
US President Donald Trump signed an executive order on 5 May 2025 to ease regulatory challenges for domestic pharmaceutical producers and impose stricter conditions on foreign manufacturers. The order instructs the FDA to expedite approval processes for domestic facilities, but skepticism remains within the industry about its impact.
The executive order also mandates the FDA to increase fees and inspections for foreign manufacturing plants. However, details are lacking, leaving uncertainty about its scope. Trump calls for eliminating unnecessary requirements to support domestic manufacturers and streamline the review process.
FDA commissioner Dr. Marty Makary supports the executive order and plans to implement its directives. He criticized the current inspection system, noting disparities between US and foreign site inspections. Recent job losses at the FDA have raised concerns about potential delays in the inspection process.
Danish pharma manufacturer Novo Nordisk’s CFO expressed doubts about the executive order’s impact on timelines for plant approvals. Companies like Novartis, AstraZeneca, Eli Lilly, and Roche have announced investments in US manufacturing amid tariff threats. Novo Nordisk previously announced a $4.1 billion investment in US manufacturing.
GlobalData reports a trend of pharmaceutical companies investing in US manufacturing. This trend, influenced by geopolitical factors, could enhance production efficiency, create jobs, and boost local economies. The industry remains uncertain about the effects of Trump’s executive order on pharmaceutical manufacturing processes.