Novartis Closely Monitors U.S. Tariff Policy Amid Expansion Plans in Japan

Swiss pharmaceutical giant Novartis (SIX:NOVN) is keeping a close eye on the U.S. tariff policy proposed by the Biden administration, which could impose a 25% import duty on pharmaceuticals. Speaking in Tokyo, CEO Vas Narasimhan emphasized the company's vigilance as the policy unfolds in early April.

The proposed tariffs are part of a broader strategy affecting pharmaceuticals, semiconductors, and automobiles, aligning with Washington’s efforts to reshape global trade. This development comes as Novartis gears up for major expansion in Japan, with plans to begin mass production of radiopharmaceuticals in 2026, according to the Nikkei newspaper.

Radiopharmaceuticals represent a cutting-edge cancer treatment designed for precision therapy. Novartis has been aggressively expanding in this space, notably with last year’s $1 billion acquisition of U.S.-based Mariana Oncology. The company already markets Pluvicto, a prostate cancer treatment, and Lutathera, used for treating rare gastrointestinal tumors.

With global trade tensions rising, Novartis’ expansion strategy and investment in precision oncology will be crucial in navigating potential tariff impacts while strengthening its presence in Japan.