Dive Brief:
- Sanofi plans to invest at least $20 billion in the U.S. over the next five years as the pharmaceutical industry braces for new tariffs from President Trump.
- The French drugmaker intends to make direct investments in Sanofi sites as well as bolster partnerships with other manufacturers, according to a statement Wednesday. It also plans to “substantially increase spending” in the U.S. on research and development.
- Still, the company warned that its investment decisions will “be adjusted as the external environment continues to evolve.” While Trump’s tariffs have so far excluded medicines, he has said that will change soon. And a host of other policy moves under his administration have put the pharmaceutical industry on edge.
Dive Insight:
With Sanofi’s latest announcement, major drugmakers have now pledged more than $200 billion in new investment in the U.S. since February as the industry tries to placate Trump and possibly give him enough of a win to back off the threat of new levies. In April, Trump promised tariffs would cause pharmaceutical manufacturers to “come rushing back into our country.”
Over the past six weeks, Trump has roiled worldwide markets by frequently changing tariff policies and those favored with exceptions. Stiff country-specific levies laid out on April 2 were mostly paused a week later. Meanwhile, the president escalated a trade war with China until reaching a truce this week.
The pharmaceutical industry has long been in Trump’s crosshairs. And while he has yet to impose industry-wide tariffs, the president this week signed an executive order designed to “equalize” U.S. drug prices with those in other countries. The effects of the order may be limited, but the action was reportedly enough to prompt Swiss drugmaker Roche to say it may rethink its recent $50 billion U.S. investment pledge.
Though based in France, Sanofi already has extensive U.S. operations, with some 13,000 employees based in the country. In April, Sanofi CFO Francois Roger said he was open to more U.S. investment as the company navigates new political realities.
The investments announced Wednesday will support production for “key medicines” as Sanofi prepares to launch a number of new products in the coming years, the company said. Sanofi has been growing its immune disease franchise through acquisitions, building on the success of its blockbuster drug Dupixent.
