Sandoz CEO Richard Saynor warns that Donald Trump's proposed 100% to 200% tariffs on imported generic drugs would ultimately raise costs for American patients. Saynor states that manufacturers cannot absorb these losses and would be forced to hike prices or halt supplies. Meanwhile, Sandoz is launching a major expansion, aiming to double its net sales by 2035 and expand its biosimilar portfolio to over 100 products by 2040 to capitalize on upcoming brand-name patent expirations.
Trump generic drug tariff proposal
- ▪The Trump administration's proposed generic drug tariffs aim to encourage pharmaceutical companies to shift their manufacturing operations to the United States.
- ▪Generic medicines are exempt from the Trump administration's Section 232 pharmaceutical tariffs as of September 2026.
- ▪Donald Trump stated in July 2026 that imported generic medicines could face tariffs of 100% starting in 2028, rising to as much as 200% in 2029.
Patient cost impact warnings
- ▪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 CEO Richard Saynor stated on September 8, 2026, that generic drug manufacturers would either raise prices or stop supplying medicines if forced to operate at a material loss due to tariffs.
Sandoz revenue growth targets
- ▪Sandoz CEO Richard Saynor stated on September 8, 2026, that the company's future GLP-1 weight-loss and diabetes generic business could bring in billions of dollars, though this upside is not included in its 2035 sales target.
- ▪Sandoz announced on September 8, 2026, that the company aims to more than double its net sales by 2035 and increase its core profit margin to above 30%.
Biosimilar expansion strategy
- ▪Sandoz plans to target around 80% of the value of biologic drugs losing patent protection from 2035, up from approximately 50% as of September 2026.
- ▪Sandoz announced on September 8, 2026, its goal to expand its biosimilar portfolio to more than 100 products by 2040, up from 13 products currently.
Generic drug market structure
- ▪Sandoz became an independent company in 2023 after being spun off from Swiss pharmaceutical giant Novartis.
- ▪Sandoz generates roughly a quarter of its revenue in North America, including Canada, as of September 2026.
- ▪Generic medicines account for approximately 90% of prescriptions in the United States, but represent a relatively small share of overall drug spending.
Patent expiration opportunities
- ▪Sandoz announced a new initiative on September 8, 2026, to capitalize on an upcoming wave of patent expirations and loss of exclusivity for branded medicines, particularly in immunology and oncology.
- ▪Sandoz secured approval in Brazil in 2026 to launch generic semaglutide, the active ingredient in Novo Nordisk's Ozempic and Wegovy, and expects Canadian approval soon.
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