Swiss laboratory Roche questions its billion dollar investments in the US
The news came to light after the announcement of a government proposal to reduce drug prices.
A scientist working in a pharmaceutical laboratory
Pharmaceutical laboratory Roche could cancel its investment plans in the country following announcements by President Donald Trump to implement plans to reduce drug prices, the Swiss company said Wednesday.
Earlier this week, Trump unveiled a plan aimed at slashing prescription drug prices, with the goal of bringing them in line with lower prices applied in other countries, triggering jolts in the stock market.
"If the proposed decree were to go into effect, Roche's ability to finance previously announced major investments in the U.S. could be challenged," the company said in a statement to AFP.
Economy
Pharmaceutical company Bristol Myers pledges $40 billion investment over five years
Diane Hernández
Pharmaceutical company investments in the U.S.
Swiss newspaper NZZ had also reported that the U.S. initiative could lead Roche to reconsider the $50 billion five-year investment announced in April.
Just three weeks earlier, another Swiss lab, Novartis, had pledged other investments for the equivalent of $23 billion.
Although drugs were not included in the so-called reciprocal tariffs announced in early April, the two groups planned to bolster their production capacities during the Trump administration, which in Roche's case accounts for more than half of its pharmaceutical division's turnover.
Executive order to lower the price of prescription drugs and pharmaceuticals
At a press conference, along with Health Secretary Robert F. Kennedy Jr. and Dr. Mehmet Oz, the president stated that they will not tolerate big pharma taking advantage of Americans.
The Republican revealed that the country had the highest drug price range in the world, which causes pharmaceutical companies to make more than two-thirds of their profits from America.
The plan will not be limited to Medicare prescriptions, but will also affect drugs covered by Medicaid and private insurance. Weight loss drugs are expected to be on the list.
Trump said he wants to lower drug prices by 59% to 90%, assuring that drug companies will agree and also "cut out the middlemen."
LATEST
