Sandoz CEO Richard Saynor warns that Donald Trump's proposed 100% to 200% tariffs on generic drugs would force manufacturers to raise prices or halt supplies, leaving American patients to bear the costs. While generics make up 90% of U.S. prescriptions, much of their active substance is produced abroad. Sandoz is simultaneously launching a major expansion, aiming to double its net sales by 2035 and grow its biosimilar portfolio to over 100 products by 2040 to capitalize on upcoming patent expirations.
Trump generic drug tariff proposal
- ▪Generic medicines are currently exempt from the Trump administration's Section 232 pharmaceutical tariffs
- ▪In July 2026, Donald Trump stated that imported generic medicines could face tariffs of 100% starting in 2028, rising to as much as 200% in 2029
- ▪The Trump administration's proposed generic drug tariffs aim to encourage pharmaceutical companies to shift their manufacturing operations to the United States
Patient cost impact warnings
- ▪Sandoz CEO Richard Saynor stated on September 8, 2026, that generic drug manufacturers could be forced to raise prices or stop supplying some medicines if tariffs are implemented
- ▪Sandoz CEO Richard Saynor warned on September 8, 2026, that American patients would ultimately bear the cost of Donald Trump's proposed tariffs on generic drugs
Sandoz revenue growth targets
- ▪On September 8, 2026, Sandoz announced a target to more than double its net sales by 2035 and increase its core profit margin to above 30%
- ▪Sandoz secured approval in Brazil in 2026 to launch generic semaglutide and expects Canadian approval soon, while key United States and European markets will not lose exclusivity until the early 2030s
- ▪Sandoz CEO Richard Saynor stated on September 8, 2026, that Sandoz's future GLP-1 weight-loss and diabetes drug business could bring in billions of dollars, though this upside is not included in the company's 2035 sales target
Biosimilar expansion strategy
- ▪Sandoz plans to target around 80% of the value of biologic drugs losing patent protection from 2035, up from about 50% as of September 2026
- ▪On September 8, 2026, Sandoz announced plans to expand its biosimilars portfolio to more than 100 products by 2040, up from 13 products currently
Generic drug market structure
- ▪Sandoz CEO Richard Saynor stated on September 8, 2026, that while nine in 10 U.S. prescriptions are for generics and biosimilars, much of the underlying drug substance is produced outside the United States
- ▪Sandoz became an independent company in 2023 after Swiss pharmaceutical giant Novartis spun off its generics and biosimilars business
- ▪Generic medicines account for approximately 90% of prescriptions dispensed in the United States, but represent a relatively small share of overall drug spending
Patent expiration opportunities
- ▪Sandoz CEO Richard Saynor stated on September 8, 2026, that the complex biosimilar space requires capital, scale, and technical expertise, which will likely reduce competitive intensity at the asset level
- ▪Sandoz announced a new drive on September 8, 2026, to capitalize on patent expirations and loss of exclusivity for branded medicines, particularly in immunology and oncology
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