In light of potential tariff threats from President Donald Trump, Pfizer Inc.’s (NYSE:PFE) CEO Albert Bourla has suggested the possibility of shifting the company’s overseas manufacturing to its U.S. facilities.
What Happened: At the TD Cowen healthcare conference, Bourla indicated that Pfizer, which already boasts an extensive U.S. manufacturing network, could relocate production to its domestic plants to avoid any potential tariffs, reported Reuters on Monday.
His remarks come as the pharmaceutical industry braces for a possible 25% tariff on imported goods. “We have the capabilities here (in the U.S.) and the manufacturing sites are operating in good capacity right now. If something happens, we will try to mitigate it by transferring from manufacturing sites outside to the manufacturing sites here,” Bourla said.
Pfizer has 10 manufacturing facilities and two distribution centers in the United States.
SEE ALSO: Trump’s Tariffs Threaten Canada, Mexico, China — And American Wallets
Why It Matters: This development follows a warning from Trump to pharmaceutical companies in February. During a confidential meeting, the President urged drug companies to expedite the transfer of their overseas production to the U.S. or face the possibility of tariffs.
Among the attendees of this meeting were the CEOs of Eli Lilly & Co. (NYSE:LLY), Merck & Co. (NYSE:MRK), and Pfizer, along with the head of the industry’s largest lobbying group. The executives aimed to convince Trump to support measures targeting middlemen blamed for increasing out-of-pocket costs and to limit a law allowing the federal government to negotiate specific drug prices.
Though the Trump administration has hinted at possible exemptions to reciprocal tariffs for certain sectors, including pharmaceuticals, a final decision is yet to be made.
While many see reshoring as a potential solution to avoid tariffs, it may not be pragmatic. Independent healthcare analyst Joshua P. Cohen wrote in Forbes, “..this takes time and is logistically complex.” He stated that generic products might call for volume purchase guarantees, and a public-private partnership may be required to boost infrastructure and regulatory compliance. “Whether the Trump administration is prepared to co-invest in a long-term strategy remains to be seen,” says Cohen.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
