Pfizer CEO says tariff uncertainty is deterring further U.S. investment in manufacturing, R&D

April 29, 2025
3,810 Views



Pfizer CEO Albert Bourla on Tuesday said uncertainty around President Donald Trump’s planned pharmaceutical tariffs is deterring the company from further investing in U.S. manufacturing and research and development. 

Bourla’s remarks on the company’s first-quarter earnings call came in response to a question about what Pfizer wants to see from tariff negotiations that would push the company to increase investments in the U.S. It comes as drugmakers brace for Trump’s levies on pharmaceuticals imported into the country — his administration’s bid to boost domestic manufacturing.

“If I know that there will not be tariffs … then there are tremendous investments that can happen in this country, both in R&D and manufacturing,” Bourla said on the call, adding that the company is also hoping for “certainty.”

“In periods of uncertainty, everybody is controlling their cost as we are doing, and then is very frugal with their investment, as we are doing, so that we are prepared for remit. So that’s what I want to see,” Bourla said.

Bourla noted the tax environment, which had previously pushed manufacturing abroad, has “significantly changed now” with the establishment of a global minimum tax of around 15%. He said that shift hasn’t necessarily made the U.S. more attractive, saying “it’s not as good” to invest here without additional incentives or clarity around tariffs.

“Now [Trump] I’m sure — and I know because I talked to him — that he would like to see even a reduction in the current tax regime particularly for locally produced goods,” Bourla said, adding a further decrease would be would be a strong incentive for manufacturing in the U.S.

Unlike other companies grappling with evolving trade policy, Pfizer did not revise its full-year outlook on Tuesday. However, the company noted in its earnings release that the guidance “does not currently include any potential impact related to future tariffs and trade policy changes, which we are unable to predict at this time.”

But on the earnings call on Tuesday, Pfizer executives said the guidance does reflect $150 million in costs from Trump’s existing tariffs.

“Included in our guidance that we didn’t really speak about is there are some tariffs in place today,” Pfizer CFO Dave Denton said on the call.

“We are contemplating that within our guidance range and we continue to again trend to the top end of our guidance range even with those costs to be incurred this year,” he said.



Source link

You may be interested

Caitlin Clark doesn’t attempt potential game-winner; social media erupts
Sports
shares3,642 views
Sports
shares3,642 views

Caitlin Clark doesn’t attempt potential game-winner; social media erupts

new admin - May 21, 2025

[ad_1] Join Fox News for access to this content Plus special access to select articles and other premium content with…

Pope Leo XIV calls for aid to reach Gaza in his first general audience
World
shares3,959 views
World
shares3,959 views

Pope Leo XIV calls for aid to reach Gaza in his first general audience

new admin - May 21, 2025

VATICAN CITY — Pope Leo XIV called Wednesday for humanitarian aid to reach the Gaza Strip and for an end…

The pursuit of better drugs through orbital space crystals
Technology
shares3,794 views
Technology
shares3,794 views

The pursuit of better drugs through orbital space crystals

new admin - May 21, 2025

In The Andromeda Strain, Michael Crichton wrote about killer alien space crystals that are (spoiler alert) ultimately stymied by Earth’s…