Sanofi To Navigate Tariff Impact With $20 Billion In Spending Through 2030
Sanofi SA (NASDAQ:SNY) announced on Wednesday that it will invest at least $20 billion in the U.S. through 2030.
Research and development, plus U.S. manufacturing, will receive the bulk of the spending.
The company also expects higher job creation within the communities where Sanofi and its partners are located, which will help enhance the U.S. supply chain.
Also Read: French Drugmaker Sanofi Clocks 20% Q1 Profit Growth, Forecasts Strong Rebound In Annual Profit
Sanofi has 13,000 US-based employees, according to CEO Paul Hudson.
“Our expected investments in the US will be substantial and will help ensure the production of key medicines in the U.S.,” he added.
Sanofi also expects to partner with other domestic manufacturers to help ensure the production of medicines in the U.S.
Earlier in May, U.S. President Donald Trump's signed an executive order to promote prescription drug manufacturing in the U.S., streamlining the path for companies to build new production sites as potential tariffs on imported medicines loom.
The White House wants facilities to come on board at a faster rate. It estimates that it can currently take five to 10 years to build new pharmaceutical manufacturing capacity, which it calls "unacceptable from a national-security standpoint.”
It’s not just Sanofi. Amid tariff uncertainty, many drug companies are investing to boost production within the U.S.:
- Eli Lilly And Co (NYSE:LLY) doubled domestic medicine production.
- Thermo Fisher Scientific Inc. (NYSE:TMO) announced it would invest an additional $2 billion in the U.S. over the next four years.
- Medtech firm Becton, Dickinson, and Company (NYSE:BDX) also announced its intention to invest $2.5 billion in U.S. manufacturing capacity over the next 5 years.
- Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) seeks to nearly double its manufacturing capacity through a new agreement with FUJIFILM Diosynth Biotechnologies.
- Novartis AG (NYSE:NVS) unveiled a $23 billion investment plan to expand in the U.S. over the next five years.
- Johnson & Johnson (NYSE:JNJ) plans to invest more than $55 billion in the U.S. over the next four years.
- Roche Holdings AG (OTC:RHHBY) announced that it will invest $50 billion in the U.S. over the next five years.
- Bristol-Myers Squibb & Co.'s (NYSE:BMY) Christopher Boerner, chair and chief executive officer, shared plans to invest $40 billion in U.S. R&D, technology, and manufacturing over the next five years in an op-ed published by Statnews.
Pfizer Inc. (NYSE:PFE) is one pharma company that did not highlight investments in new manufacturing plants. The company noted that they already have significant capacity and flexibility to manufacture products in the U.S.
Price Action: Sanofi stock is down 1.53% at $49.20 at the last check on Wednesday.
Read Next:
Image: Shutterstock