Swiss pharmaceutical leader Novartis is closely observing the unfolding of the United States’ proposed reciprocal tariff policy, slated to commence in early April, according to CEO Vas Narasimhan.
The United States, under President Donald Trump, recently proposed import duties of around 25% on pharmaceuticals. This move is part of broader measures intended to impact a variety of sectors, including semiconductors and automobiles, as part of an effort to reshape global trade. Narasimhan, speaking at a briefing in Tokyo, emphasized, “The real key is to see what are the policies that are actually implemented versus what’s being said in the rhetoric.”
This caution from Novartis comes as Trump announced the imposition of reciprocal and sectoral tariffs starting April 2, while ruling out exemptions for steel and aluminum tariffs. Historically, Trump has announced tariffs on trade partners only to later suspend them or make exceptions, adding an element of uncertainty that global companies like Novartis must navigate.
Amid these trade discussions, Novartis remains focused on its expansion strategies in Asia. Narasimhan was in Japan to reveal plans for a new research hub employing about 50 people to boost clinical trials in the region. This initiative follows a $100 million investment in its Sasayama facility, projected to increase the production of radiopharmaceuticals—advanced nuclear medicines targeting cancer.
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Additionally, in the previous year, Novartis made a significant acquisition of the U.S.-based Mariana Oncology for $1 billion upfront. This deal aims to enhance their drug portfolio, which includes treatments like Pluvicto for prostate cancer and Lutathera for addressing rare gastrointestinal tumors. Such investments underscore Novartis’ commitment to expanding its oncology presence globally.
As the U.S. tariff policy evolves, Novartis remains vigilant and strategically committed to its growth plans, exemplified by its expansion in Japan and its ongoing investment in the oncology sector.
