The news: The Trump administration plans to impose tariffs of up to 100% on some brand-name prescription drugs, with a few caveats.

• Pharma companies that previously struck deals to expand US manufacturing and lower drug prices won’t face tariffs if they continue to meet their commitments.
• Countries that made earlier pharma trade deals—the EU, Japan, South Korea, and Switzerland—will keep the negotiated 15% tariff rate.
• Generic drugs, biosimilars, and some orphan drugs are exempt.
• Large drugmakers without deals will have 120 days to reach one, while smaller companies will have 180 days.

Why it matters: Most large pharma companies have already struck deals to boost US manufacturing and cut drug prices in exchange for avoiding tariffs.

• Pfizer was the first large pharma company to reach a tariff deal in September, followed by 16 of the 17 large pharma companies Trump initially targeted.
• Only Regeneron remains without a deal but expects to finalize one soon.

The new tariffs extend similar demands to midsize and small pharma and biotech companies, but industry groups note that smaller companies are resource-constrained. A BIO statement said that while those companies want to increase US investment, tariffs, an uncertain policy environment, and most-favored-nation pricing “work directly against that goal.”

Implications for pharma companies: The latest wave of pharma tariffs will test how far the Trump administration can push beyond large drugmakers. Smaller pharma and biotech companies have fewer products and tighter margins, making it more difficult to absorb major US manufacturing projects or price cuts across smaller portfolios.

Those companies may take different approaches. Some may delay negotiations or ask for narrower terms than larger players, while others may accept tariffs if the compliance costs are too high. Some companies may also seek individual concessions, especially since large pharma deals include varying limits on things like timelines and the number of drugs subject to pricing cuts.

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