Trump announcement gives big pharma ‘light at end of the tunnel,’ says Jefferies

After President Trump announced in a Truth Social post that he will impose an 100% tariff on any branded or patented pharmaceutical product starting October 1, unless the company is building their pharma manufacturing plant in America, Jefferies analyst Akash Tewari called this news “a win for Pharma” and a “light at the end of the Trump tunnel,” noting that several large-cap companies in the space have already announced that they’re building U.S. manufacturing facilities. The firm suspects that between the MFN pilot program announcement and tariffs that the administration is trying to set up for an “on the paper” win heading into midterms, which may not actually have any material effect on Pharma companies. Publicly traded large-cap drugmakers include AstraZeneca (AZN), Bristol Myers (BMY), Eli Lilly (LLY), GSK (GSK), Johnson & Johnson (JNJ), Merck (MRK), Novartis (NVS), Pfizer (PFE), Roche (RHHBY) and Sanofi (SNY).