Merck followsThe leading of Johnson and Johnsonand reporting a expected financial hit fromTariffsimposed by the Trump administration.
In a revenue call on April 24, the executives said they were expecting $ 200 million in tariff-related costs in 2025. Merck lowered the year's revenue expectations from $ 8.88- $ 9.03 per part to $ 8.82- $ 8.97 per part.
The news came a week after J&J executives said they were expecting $ 400 million at the costs induced by the tariff in 2025.
Robert Davis, Chairman and CEO of Merck, said at the time of the call that the impact that the impact comes from existing tariffs implemented “between the US and China, and to a lower level, Canada and Mexico.”
Although theThreatIn the pharmacist tariffs following the commercial department's announcement on April 14 that the Trump administration was investigating the national security implications of pharmaceutical imports, Davis didn't seem to worry.
“In relation to the potential additional US tariffs specifically to pharmacists, our global supply chain and current inventory levels put us a good position to navigate potential close effects,” he said.
When asked during a income income how Merck prepares for potential pharmaceutical tariffs, Davis said the company has identified ways to “reinstate” its manufacturing, along with changing priorities of existing plants, leading to external manufacturing, and developing internal manufacturing.
Merck has invested $ 12 billion in manufacturing US-based manufacturing since 2018 and plans to invest an additional $ 9 billion to 2028, Davis said, adding that the company's investments will “lead to more of our products for US patients made in the US as well as many opportunities for export.”
Mag -zoom out.Merck is not the only drugmaker featuring US investments.
J&J executives in March said the company plans to invest $ 55 billion in US manufacturing over the next four years. And in February, Eli Lilly Executive said the company will invest at least $ 27 billion to open four new US -based plants for the next five years.
All three drug makers said their decisions to expand US manufacturing were due to the 2018 Tax Cut and Jobs Act, which lowered the domestic tax rate for pharmaceutical companies.
The tax policy, rather than tariffs, is a “very effective tool to build a manufacturing capacity here in the US, both for Medtech and pharmacists,” J&J CEO Joaquin Duato said on the company's income call.
A quick rundown.Merck's Worldwide Sales for Q1 2025 is $ 15.5 billion, down 2% from Q1 2024.
Despite the decline of 2025 revenue expectations, the company said it is still expected that the entire sale will fall between $ 64.1 billion to $ 65.6 billion this year.
Merck also prepares for the blockbuster Cancer Drug Keytruda, which alone costs more than 45% of the Drugmaker's global drug sales, to deal with patent expiry in 2028. Keytuda sales rose 4% during the quarter to $ 7.2 billion, from $ 6.9 billion in the same quarter last year, even the senior analyst senior analyst, even senior analyst, even senior analyst senior analyst, even senior analyst senior analyst, Analyst Daina Greybosch wrote on a note following Merck calling that Merck was just below Leerink expectations.
This report is Originally published ni Healthcare brew.
This story was originally featured on Fortune.com
