As biopharma players continue to parse out what the second Trump administration means for the industry, Pfizer CEO Albert Bourla, Ph.D., outlined one potential response by his company if pharmaceutical tariffs come into play.
Pfizer’s local manufacturing setup is already well positioned in the U.S., and the New York-based drugmaker could bring additional resources into the country if the situation demands, Bourla said Monday at TD Cowen’s 45th annual healthcare conference in Boston.
Bourla made his comment against a backdrop of uncertainty as pharma execs and industry watchers weigh the effects of potential tariffs from President Donald Trump's administration.
Besides general tariffs on products from Canada, Mexico and China, Trump in late February said he planned to introduce tariffs starting at “25% or higher” on pharmaceutical imports, Reuters reported last month.
Trump did not provide a timeline for when the tariffs could set in for the pharma industry, though he acknowledged the importance of giving drugmakers time to set up domestic factories to avoid any potential penalties, according to the news service.
At the TD Cowen event Monday, Bourla admitted that the situation could be tricky for pharma companies, given the significant volumes of drugs—both generic and innovative—that are produced outside of the U.S.
Still, the CEO stressed that Pfizer is likely set up for success no matter what comes. Pfizer already has 13 U.S. manufacturing sites up and running, including several “megasites” for sterile injectables and antibody manufacturing, according to Bourla.
“We have all the capabilities here, and the manufacturing sites are operating in good capacity right now,” he continued. “But if something happens, we will try to mitigate by transferring from manufacturing sites outside to manufacturing sites here.”
Bourla—who's long had a working relationship with Trump thanks to the Operation Warp Speed initiative in 2020—has taken an upbeat stance toward the new administration. Speaking at a forum held by the trade group PhRMA last month, the Pfizer chief suggested Trump’s second run in the White House presents more opportunities than risks for drugmakers.
Meanwhile, other pharma companies, such as Eli Lilly, appear to be wasting no time embracing domestic drug production.
Last week, the Indianapolis-based drugmaker said it would kick off construction this year on four new manufacturing plants in the U.S. for a total investment of $27 billion. The project, which is expected to create more than 3,000 jobs, will introduce three new drug ingredients plants in the U.S. plus a fourth for injectable therapeutics.