Pfizer CEO Albert Bourla on Tuesday said uncertainty around President Donald Trump\u2019s planned pharmaceutical tariffs is deterring the company from further investing in U.S. manufacturing and research and development. <\/p>\n
Bourla\u2019s remarks on the company\u2019s 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\u2019s levies on pharmaceuticals imported into the country \u2014 his administration\u2019s bid to boost domestic manufacturing.<\/p>\n
\u201cIf 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,\u201d Bourla said on the call, adding that the company is also hoping for \u201ccertainty.\u201d<\/p>\n
\u201cIn 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\u2019s what I want to see,\u201d Bourla said.<\/p>\n
Bourla noted the tax environment, which had previously pushed manufacturing abroad, has \u201csignificantly changed now\u201d with the establishment of a global minimum tax of around 15%. He said that shift hasn\u2019t necessarily made the U.S. more attractive, saying \u201cit\u2019s not as good\u201d to invest here without additional incentives or clarity around tariffs.<\/p>\n
\u201cNow [Trump] I\u2019m sure \u2014 and I know because I talked to him \u2014 that he would like to see even a reduction in the current tax regime particularly for locally produced goods,\u201d Bourla said, adding a further decrease would be would be a strong incentive for manufacturing in the U.S.<\/p>\n
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 \u201cdoes not currently include any potential impact related to future tariffs and trade policy changes, which we are unable to predict at this time.\u201d<\/p>\n
But on the earnings call on Tuesday, Pfizer executives said the guidance does reflect $150 million in costs from Trump\u2019s existing tariffs.<\/p>\n
\u201cIncluded in our guidance that we didn\u2019t really speak about is there are some tariffs in place today,\u201d Pfizer CFO Dave Denton said on the call.<\/p>\n
\u201cWe 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,\u201d he said.<\/p>\n<\/p>\n
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