Trump’s drug price cut order threatens Roche’s $50 billion US investment
Swiss pharmaceutical company Roche said its plan to invest $50 billion in the United States is at risk due to US President Donald Trump's executive order to lower drug prices, Reuters reports.
This is Trump's executive order, which obliges drug manufacturers to lower prices for prescription drugs to bring them in line with the cheapest in the world.
"If the proposed order goes into effect, Roche's ability to implement previously announced investments in the US will be in question," the company said.
Roche currently does not expect the executive order to have a direct impact on its business in 2025, and assures that it will continue to engage with the Trump administration and Congress.
In April, Roche announced its intention to invest $50 billion over the next five years, creating more than 12,000 new jobs in the United States.
Amid Trump's calls to bring the pharmaceutical industry back from abroad, other major companies such as Eli Lilly, Johnson & Johnson and Novartis have also announced large investments in American manufacturing.
Meanwhile, Novartis, another major Swiss pharmaceutical company based in Switzerland, said it has no plans to change its investment strategy in the US in response to the president's executive order.
"We are working in both the US and Europe to advocate for necessary changes, including reducing the role of PBMs (pharmacy benefit managers) and correcting significantly lower prices in Europe," Novartis stressed.
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