Skip to content

Fresenius is escalating its operations, implementing strategic measures to dodge Trump's import taxes.

Fresenius elevates efforts to evade Trump's proposed tariffs

Fresenius surpassed market forecasts by analysts at the onset of the year
Fresenius surpassed market forecasts by analysts at the onset of the year

Fresenius raises defenses to ward off Trump tariffs - Fresenius is escalating its operations, implementing strategic measures to dodge Trump's import taxes.

Let's dive into the latest buzz surrounding the pharmaceutical industry giant, Fresenius. With a robust Q1 performance and ongoing dialogues with the US government, the company aims to dodge potential tariffs under President Trump.

Michael Sen, CEO of Fresenius, is feeling bullish about hitting annual targets, despite the looming threat of tariffs. The US government has so far kept pharmaceutical imports out of its tariff package, but a review is underway. Sen shares that Fresenius is engaging in discussions with local authorities. They can make a case for offering essential and affordable generic medicines to the American healthcare system, which are predominantly produced locally.

The US is a significant market for Fresenius, contributing around 10% of its revenue through its generic subsidiary Kabi. The majority of medicines in the US—70%—are domestically manufactured. This means that Fresenius may face less impact from import tariffs compared to foreign competitors like those from India and China.

Q1 Delivers Unexpected Gains

Fresenius reported unexpectedly strong growth in the first quarter. Revenue increased by 7% year-on-year to €5.63 billion, with adjusted EBIT growing by 4% to €654 million. Cost-cutting programs and core business growth at Kabi, boosted by drugs, clinical nutrition, and medical technology, provided a positive push.

Consolidated net income climbed by 12% to €416 million, excluding the stake in dialysis specialist Fresenius Medical Care.

Fresenius aims to increase revenue by 4-6% by 2025, excluding one-time and currency effects. However, they're aware of risks associated with unfavorable tariffs, though only to the extent these can currently be estimated.

  • Fresenius SE
  • Pharma
  • Donald Trump
  • USA
  • Michael Sen
  • Bad Homburg
  • US President

While the full extent of the impact from President Trump's potential tariffs remains uncertain, Fresenius is strategizing to minimize risks through diversification of export markets, renegotiating contracts, or lobbying for exemptions.

Stay tuned for further updates on this high-stakes game of trade and pharmaceuticals!

  • Fresenius is actively engaging in discussions with local authorities in the US, aiming to argue for their role in offering essential and affordable generic medicines to the American healthcare system, a sector predominantly dominated by domestic production.
  • As the US is a significant market for Fresenius, contributing around 10% of its revenue, the company is also strategizing to mitigate potential risks from President Trump's tariffs through diversification of export markets, renegotiating contracts, or lobbying for exemptions, as industry leaders navigate the complexities of finance and business in the emerging health policy landscape.

Read also:

    Latest