The CEOs of Ellie Lily and Company David Ricks speak on March 12, 2024 at The Economic Club of New York in New York City.
Spencer Plot | Getty images
Ellie lily CEO Dave Ricks said on Thursday that drug manufacturer may “answer” national security concerns around cheap essential drugs Drug-specific tariff Low
The Trump administration has investigated a section 232 how to import some drugs in the US affects national security – one step is widely seen as a preface to start tariffs on pharmaceuticals. It is not clear what the levy will look and whether they will target branded or old generic drugs, of which the latter is largely built abroad in countries such as India and China.
Ricks said in an interview with CNBC, “Bring back that capacity, so in terms of emergency, we have stock, we have supply – this is a valid thing.” He spoke after Ellie Lily First quarter earnings and 2025 guidance reportedWhich did not include the approximate effects of potential drug tariffs.
He said that national security concerns around those drugs are “legitimate”.
But he said: “Do I think Tariff is the answer? I am not so certain personally.”
He said, “We will be happy to talk to this administration or national security people how we can respond to such a crisis.” “We have the ability to bring there, and we are happy to help the country if we need.”
Eat about old generic drugs 90% medicines Several prescribed hospital care in the US is important, including antibiotics and vasopresters, or blood pressure enhancing drugs.
Ricks stated that it is not easy to make those essential drugs, but they are cheap, and they are out of our country due to cost and other harmful policies. “
However, some health experts earlier told CNBC that tariffs on generic drugs, which have less profit than branded drugs, may force some generic drug manufacturers to abandon the American market completely. This may increase or increase the deficiency of some common drugs in the US, such as sterile injected medications commonly used in hospitals.
Rick’s comments come as a drug maker for the President Donald TrumpSchematic drug tariffs, which aim to promote domestic manufacturing. Those tariffs are already Fuel a new wave American manufacturing investment from pharmaceutical industry.
It also includes Ellie Lily, which announced in February Invest at least $ 27 billion To build four new production sites in the US
On Thursday, Ricks said that tariffs may not be required after the industry steps after construction.
“I think the risk of tariff is actually bringing back to important supply chains already important industries, chips and pharma,” Ricks said. “So do we need to enact [tariffs?] I am not sure ,
He said that Eli Lily wants to see permanent low tax rates in America, especially 15%for domestic production. Ricks said Lower Tax inspired many drug manufacturers to be reduced to the islands like “Ireland, Singapore and Switzerland, and may return if there is any economic incentive.”
It echoes the spirit of Fizer CEO Albert Borla Information On Tuesday. However, Borla argued that uncertainty around the tariff was preventing the company from investing in manufacturing and research and development.
