Novo Nordisk Opposes Pharma Tariffs, Calls for Action Against Illicit Chinese Semaglutide Imports.

Novo Nordisk has voiced strong opposition to proposed pharmaceutical tariffs under review by the U.S. Department of Commerce, instead urging the agency to focus on curbing unauthorized imports of semaglutide, particularly from China. In a letter dated May 6, the Danish pharmaceutical company warned that sweeping tariffs could disrupt access to essential medications and compromise public health.

The company’s appeal comes in response to the Commerce Department’s Section 232 investigation into the national security implications of pharmaceutical imports. Rather than endorsing a blanket tariff on all pharma products, Novo Nordisk asked the department to concentrate its efforts on illegal semaglutide imports — the active ingredient in its widely used medications Wegovy and Ozempic.

According to Novo, unauthorized versions of semaglutide, largely originating from China, not only threaten the integrity of the U.S. drug supply but also undermine domestic pharmaceutical investments. The company emphasized that the FDA lacks adequate oversight over foreign producers of these compounded versions, which are increasingly accessible to U.S. patients despite being unapproved.

Citing internal findings, Novo revealed that of the 19 companies known to have shipped semaglutide compounds into the U.S., 12 failed to meet Good Manufacturing Practice (GMP) standards for the drug. The company also criticized China’s own regulatory framework, stating it offers insufficient oversight of these manufacturers.

Novo Nordisk highlighted its commitment to maintaining a secure and compliant pharmaceutical supply chain, pointing out that while much of its development and packaging is done in the U.S., key manufacturing still occurs in Europe. All semaglutide active pharmaceutical ingredients (APIs) imported into the U.S., the company noted, are produced at its Danish facility, which complies with international regulatory standards.

Imposing tariffs on legitimate pharmaceutical imports from approved sources, Novo warned, could jeopardize U.S. production capacity, threaten ongoing investments, and limit patient access to life-saving drugs. “Ensuring the integrity of our supply chain is essential to providing uninterrupted access to high-quality medications for American patients,” the company stated.

Novo Nordisk joins other major pharmaceutical firms in pushing back against recent federal policy proposals aimed at curbing drug costs. Earlier this month, Amgen advised the government to prioritize domestic manufacturing incentives over punitive tariffs. The broader industry has also expressed concern over former President Donald Trump’s “Most Favored Nation” pricing executive order, which ties U.S. drug prices to those in peer nations.

Industry leaders argue that such price controls could have far-reaching consequences. Takeda’s U.S. president Julie Kim described the order as a form of “price control,” warning it could cost the industry as much as $1 trillion over a decade. AbbVie echoed this sentiment, stating the policy could hinder U.S. healthcare innovation and competitiveness.

With the Commerce Department’s review ongoing, the debate underscores a growing divide between efforts to reduce drug prices and the need to safeguard pharmaceutical supply chains and innovation.

Source:https://www.biospace.com/policy/novo-opposes-pharma-tariffs-urges-crackdown-on-illicit-chinese-semaglutide

This is non-financial/medical advice and made using AI so could be wrong.