Pharma stocks survive market rout on tariff exemption, but uncertainty continues

Written by Maggie Vic and Kashish Tandon

LONDON/Bangaloreu (Reuters) – The shares of the pharmaceutical maker gained a temporary postponement on Thursday as US president Donald Trump has survived pharmaceutical products from mutual winding tariffs, but executives and analysts warned that it was too early to celebrate since it is still likely that the customs tariff will come.

Trump imposed a 10 % tariff on most American imports, as well as prominent fees on dozens of competitors and allies alike, but temporarily exempt some commodities, including drugs, which benefit from the main exporters including India, Japan and Ireland.

The shares of American drug makers, Johnson and Johnson, increased by about 2 %, challenging the wider market decline.

Through continents, the shares of Indian and Europeans pharmaceuticals rose, in a sign that pharmaceutical products remained out of Crosshairs of the Trade Wars.

A US official said on Wednesday that the president was planning to separate the definitions targeting the pharmaceutical sector.

In his announcement of the White House, Trump was installed by this industry, expecting that pharmaceutical companies “return” to the United States, and warn them if they did not do so, “they got a large tax to pay it.”

“The administration has strengthened the need to maintain the power of strong local manufacturing and flexibility in medicines,” Stephen Pharma & Healthcare Lead in ing. “Therefore, it is highlighted as a sector that need to be returned.”

Fears continue

Many people have predicted that the last uncertainty about the definitions will continue to dump the remains of medicines.

“The only thing that he feels is certain is more uncertain,” Emily Field told Barclays to Reuters.

“It is not today, but it is coming.”

Trump’s executive order was included in the side of wood, semi -conductors and other sectors that can be under investigation under Article 232 of the 1962 US Trade law.

Bernstein analysts said in a note that the US industrial costs for pharmaceutical companies will affect that the definitions of the country will affect the main supplies such as organic chemicals and glass utensils used to make medicine products. They calculated $ 45 billion of the risk of importing cost to the pharmaceutical industry.

Jeffrez analysts said Biogen and AMGEN were among the drug makers suffering from most of the previous exposure to the United States, while UBS referred to ABBVIE and Merck with manufacturing abroad.

Medical devices and diagnostic equipment do not seem exempt, and the shares have decreased in companies including gelthcare and Dexcom about 6 %.

The ADVAD medical hardware group said that the customs tariff is likely to lead to discounts in spending on research and development and threatened the American position as a leader of innovation in the medtech sector.

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