{"id":43668,"date":"2025-09-21T11:35:08","date_gmt":"2025-09-21T11:35:08","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/09\/21\/novartis-ramps-up-us-stockpiles-to-shield-against-potential-tariffs\/"},"modified":"2025-09-21T11:35:08","modified_gmt":"2025-09-21T11:35:08","slug":"novartis-ramps-up-us-stockpiles-to-shield-against-potential-tariffs","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/09\/21\/novartis-ramps-up-us-stockpiles-to-shield-against-potential-tariffs\/","title":{"rendered":"Novartis ramps up US stockpiles to shield against potential tariffs"},"content":{"rendered":"
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Novartis AG (NOVN.S) has significantly increased its stockpiles of pharmaceuticals in the United States<\/a> and is positioning itself to withstand potential tariffs, Chief Executive Officer Vas Narasimhan said in a recent interview. <\/p>\n

The move comes amid growing concern over US trade measures that could affect imports from Switzerland and the broader pharmaceutical sector.<\/p>\n

Speaking to the Swiss newspaper Neue Z\u00fcrcher Zeitung, Narasimhan emphasised that the company\u2019s current inventory in the US is sufficient to last until mid-2026.<\/p>\n

\u201cWe have significantly increased our stockpiles in the US, so they will certainly last until mid-2026,\u201d he said, highlighting the company\u2019s proactive approach in light of potential trade disruptions.<\/p>\n

Current tariff landscape and trade deals<\/h2>\n

Last month, the US slapped 39% tariffs on Switzerland, Japan and China, and pharmaceuticals are still exempt from such tariffs. <\/p>\n

However, the sector is following the results of an ongoing probe, which could lead to import tariffs for specific industries.<\/p>\n

The US secured a bilateral trade deal with the European Union earlier this year. Almost all pharmaceuticals would be subject to a 15% tariff as part of this deal, with some exceptions for generic drugs. <\/p>\n

The deal does offer some clarity, but uncertainty remains with regard to further trade action related to the Section 232 probe into the pharmaceutical sector.<\/p>\n

Investments to localize production<\/h2>\n

In addition to stockpiling, Novartis has announced $23 billion in medium-term investments in the United States. <\/p>\n

The company plans to manufacture its most critical products locally to reduce reliance on imports and mitigate any potential tariff impacts.<\/p>\n

Narasimhan outlined a multi-year timeline for these production shifts. \u201cIt will likely take three to four years to get there. <\/p>\n

But I estimate that we can make significant shifts within the next two years, for example, to carry out some of the final filling and packaging in the US,\u201d he said.<\/p>\n

The strategy aims to maintain supply chain resilience and ensure uninterrupted delivery of key medicines to the American market.<\/p>\n

Prepare for multiple scenarios<\/h2>\n

While Novartis is taking precautions to safeguard itself, Narasimhan admitted that the exact extent of future tariffs is unknown. <\/p>\n

Washington’s Section 232 probe might theoretically result in duties of up to 250%, but he regarded such conclusions as difficult to predict.<\/p>\n

“We’re working on all possible scenarios, and hope the government realises that expanding production in the US will take time,” Narasimhan shared. <\/p>\n

He emphasised that clarity will only emerge after the Section 232 investigation is completed, albeit no timetable for completion has been provided.<\/p>\n

Strategic buffering and risk management<\/h2>\n

A dual strategy of stockpiling and domestic production is seen at a number of multinational pharmaceutical companies preparing for potential trade disruptions. <\/p>\n

Novartis is building a buffer of existing inventory and then slowly shifting production domestically to help ensure that its operations and supply chains can function even in the event of multiple trade scenarios.<\/p>\n

Analysts said such measures may provide a template for other firms to follow in economic environments dominated by vagaries of trade.<\/p>\n

Stockpiling is a way to get by in the short run, but localisation of manufacturing provides long-run risk and regulatory relief \u2014 and may even lessen the effects of tariffs after they are implemented.<\/p>\n

Outlook and ongoing uncertainty<\/h2>\n

For the time being, Novartis appears to be well prepared to deal with future tariff shocks. <\/p>\n

The company’s present equity levels, combined with continued US investments, provide a strategic buffer that may help absorb trade disruptions.<\/p>\n

Nonetheless, the ultimate impact will be determined by the results of the Section 232 investigation and any subsequent trade policy decisions made by the US government.<\/p>\n

Narasimhan emphasised the company’s commitment to remaining flexible and adaptable, saying, “We won’t have further clarification until the so-called Section 232 probe is concluded. We’re not sure when the findings will be released.”<\/p>\n

The post Novartis ramps up US stockpiles to shield against potential tariffs<\/a> appeared first on Invezz<\/a><\/p>\n

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Novartis AG (NOVN.S) has significantly increased its stockpiles of pharmaceuticals in the United States and is positioning itself to withstand potential tariffs, Chief Executive Officer Vas Narasimhan said in a recent interview. The move comes amid growing concern over US trade measures that could affect imports from Switzerland and the broader pharmaceutical sector. Speaking to <\/p>\n","protected":false},"author":1,"featured_media":43669,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-43668","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/43668","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=43668"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/43668\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/43669"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=43668"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=43668"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=43668"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}