The US and EU trade negotiation introduces a 15% tariff on branded pharmaceutical products, marking the first time in decades that the pharmaceutical industry has been directly impacted. The implementation of the tariff is pending a National Security investigation on pharmaceutical imports.

This trade deal puts the pharmaceutical industry at risk of losing between $13bn and $19bn, potentially forcing companies to choose between tighter profit margins or increased drug prices. This decision could impact patient access and payer relations in the long term.

Tariffs may lead to increased costs in the pharmaceutical value chain, affecting drug development, manufacturing, and distribution. Companies with EU-based manufacturing may face delays in launch planning for late-stage assets entering the US market due to the uncertainty caused by the tariffs.

Research and development budgets are under pressure as pharmaceutical companies may need to divert funds to address tariff impacts. This could hinder innovation and pipeline investment, slowing down therapeutic advancements in the industry.

The recent US-EU trade deal has left the pharmaceutical industry vulnerable to global volatility, raising concerns about potential tariff increases beyond 15% in the future. The sector, once shielded from geopolitical shifts, now faces increased uncertainty and challenges.

Read more at Yahoo Finance: New US-EU trade deal on tariffs ends pharma’s geopolitical immunity