Sandoz CEO says Trump's threatened tariffs present an opportunity for the company

Sandoz CEO Richard Saynor has cast President Donald Trump’s threatened tariffs on imported generic medicines as a possible opening for the Swiss drugmaker, even as pharmacists and patient advocates warn the policy could raise prices and strain supply. Bloomberg reported on August 5 that Saynor viewed the proposal more as an opportunity than a threat for Sandoz. The split reflects how the same trade measure can land differently on manufacturers, wholesalers, pharmacies and patients across the generic-drug chain. Trump announced in July that imported generic drugs would face no tariff for two years from August 1, 2026, then a 100% tariff from August 2028 and a 200% tariff a year later. He said the policy was meant to push production into the United States. Reuters reported on July 22 that Sandoz responded by saying it would continue discussions with policymakers and that it was too early to assess the effect on manufacturing or future investment decisions. (wisconsinindependent.com) ### Why would Sandoz see an opening in a tariff threat? Richard Saynor runs one of the world’s largest pure-play generics and biosimilars companies, and Sandoz has been presenting itself as a scaled supplier with global manufacturing reach. The company said in its 2025 annual report that it generated $11.1 billion in net sales, reached more than 1 billion patients annually and derived 30% of sales from biosimilars. That scale helps explain why a large producer might think market disruption could create share gains or improve pricing in some segments. (cnbc.com) Reuters reported on July 22 that Vontobel analyst Stefan Schneider said the U.S. government was trying to reverse the shift of generic-drug production to lower-cost countries, though bringing manufacturing back would likely raise U.S. generic prices. Schneider said the rules would mainly hit China and India, where much generic production is concentrated, but would also weigh on Sandoz because about 22% of its sales come from North America and it has limited production there. (sandoz.com) ### Why are independent pharmacies reacting so differently? Thad Schumacher, owner of Fitchburg Family Pharmacy outside Madison, Wisconsin, said the tariffs could force him to borrow more or close his business. In an August 5 report, Schumacher said wholesalers would face higher costs, pharmacies would be asked to absorb them, and patients would eventually pay more. He added that pharmacies tied to pharmacy benefit manager reimbursement would not necessarily be paid more even if acquisition costs rose. (marketscreener.com) Schumacher said some prescriptions already lose money for local pharmacies, and he sometimes sends patients elsewhere rather than fill them at a loss. His argument is that tariffs would worsen an existing squeeze rather than create a new one from scratch. ### How exposed are patients if tariffs take effect? (wisconsinindependent.com) The U.S. Food and Drug Administration says generic medicines account for more than 90% of prescriptions filled in the United States. TIME reported on July 23 that generic drugs have much lower average prices than brand-name medicines and that experts expected Trump’s proposal to affect both cost and availability if enacted as announced. Reuters separately quoted Patients For Affordable Drugs CEO Merith Basey saying “massive tariffs” risk making lower-cost medicines more expensive and harder to access. (wisconsinindependent.com) CNBC reported on July 22 that key details remain unclear, including how the tariffs would interact with the economics of a business built on thin margins and high volume. That uncertainty matters because generic manufacturers, distributors and pharmacies do not have the same ability to absorb extra costs. ### What does this fight show about the generic-drug business? (time.com) Sandoz said on July 22 that it shared the goal of improving affordability and access in the United States, while continuing to engage with policymakers. Pharmacists, patient groups and outside analysts are making a different case: that tariffs could raise costs faster than the system can adapt. Those positions are not mutually exclusive; they describe different points in the same supply chain. (cnbc.com) August 2028 is the first hard date in Trump’s plan, and the intervening two-year window gives manufacturers, trade groups, pharmacies and the administration time to argue over exemptions, investment and supply. Sandoz has said it will stay in talks with U.S. policymakers, and pharmacy owners such as Schumacher are already using that window to press their warning publicly. (cnbc.com) (marketscreener.com)