The Journal. A Pharmaceutical Executive on Trump’s Tariff Strategy
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Jul 28, 2025 
Richard Saynor, CEO of Sandoz, dives deep into the ramifications of President Trump's proposed tariffs on imported pharmaceuticals. He outlines the minimal incentives for U.S. manufacturing and how these tariffs threaten the affordability and availability of generic drugs. Saynor also compares brand-name and generic companies, discussing the ethical dilemmas of rising costs for patients. He emphasizes the need for structural reforms in the generics industry as a critical step towards improving access to affordable medications in the shifting landscape of U.S. pharma.
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Impact of Tariffs on Generics
- Generic drugs treat most U.S. patients affordably, often costing pennies on the dollar.
- Tariffs disproportionately affect generics due to their low-cost, low-margin business model.
High Costs Block U.S. Manufacturing
- Bringing generic drug manufacturing to the U.S. is financially impractical due to high costs and low drug prices.
- A $2-$3 billion investment to build a facility can't be supported by prices below that of a pack of M&Ms.
Potential Responses to Tariffs
- If tariffs make manufacturing unprofitable, companies might raise prices or stop selling products.
- Decisions will be made case by case, balancing moral responsibility and business sustainability.