A Pharmaceutical Executive on Trump’s Tariff Strategy

Jessica Mendoza interviews Richard Saynor, the CEO of Sandoz, a generic drug manufacturer, about the potential impact of President Trump's proposed tariffs on the pharmaceutical industry, particularly on generic drugs. Saynor explains that generic drug companies operate on much smaller profit margins than brand-name drug makers, making them more vulnerable to tariffs. He argues that tariffs are not the solution and could lead to price increases or the withdrawal of essential medicines from the U.S. market. Saynor highlights the challenges of manufacturing generics in the U.S. due to higher costs and structural issues within the U.S. market, such as patent law favoring brand-name drugs and the negotiating power of consolidated middlemen driving down prices. Despite these challenges, Saynor remains optimistic about Sandoz's future in the U.S. and is actively engaging with the administration to find sustainable solutions.