Eli Lily’s CEO and the company David Ricks spoke at the New York Economic Club on March 12, 2024 in New York.
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Eli Lily CEO Dave Ricks on Thursday said the drug manufacturer could help “respond” to national security concerns about more cheapest major drugs such as Pharmaceutical-specific tariffs Stan.
The Trump Administration has opened an investigation into Section 232 on how the import of certain medicines in the United States influences national security – a move widely regarded as a prelude to starting tariffs for pharmaceuticals. It is unclear how these levies will look and whether they will target branded or older generic drugs, the latter of which are largely made abroad in countries such as India and China.
“Returning this capacity back, so in the event of an emergency we have stocks, we have delivery – this is a valid thing,” Ricks said in an interview with CNBC, citing these older medicines. He speaks after Eli Lily reported profits from the first quarter and 2025 guideswhich do not include predictive effects of potential pharmaceutical tariffs.
He said the fears of national security around these drugs are “valid”.
But he added, “I think tariffs are the answer to this? I’m not so sure personally.”
“We will be glad to talk to this administration or people of national security about how we can react to such a crisis,” he said. “We have the capacity to carry there, and we are happy to help the country if we need.”
The older generic drugs represent about 90% of medicines Many prescribed in the United States are critical of hospital care, including antibiotics and vasopressors or drugs that increase blood pressure.
Ricks noted that these major drugs “are not easy to prepare, but they are cheap and are expelled from our country due to costs and other harmful policies.”
However, some health experts have told CNBC earlier that generic drug tariffs that have a far smaller profit margin than branded drugs may force some generic drug manufacturers to leave the US market entirely. This can or to exacerbate certain generic drugs in the United States, such as sterile injection drugs that are commonly used in hospitals.
Rick’s comments come when president drug makers Donald TrumpPlanned pharmaceutical tariffs that aim to increase domestic production. These tariff threats are already Supply to a new wave from US production investments from the pharmaceutical industry.
This includes Eli Lily, who in February announced that he would Invest at least $ 27 billion To build four new manufacturing sites in the US
On Thursday, Ricks said tariffs may not be needed after the industry moves to rescing production.
“I think, in fact, the threat of tariffs is already returning critical supply chains to important industries, chips and pharmaceutical pharma,” Ricks said. “So do we have to apply (tariffs?) I’m not so sure.”
He added that Eli Lily wants to see constant lower tax rates in the United States, especially 15% for domestic production. Ricks said lower taxes have made many drug producers produce in “low taxes such as Ireland, Singapore and in Switzerland, and this can be returned if there is an economic incentive.”
This voices the mood of Pfizer CEO Albert Burla Comments Tuesday. Although Burla claims that uncertainty about tariffs is deterrent to making US investment in production and research and development.