Ther­mo Fish­er Sci­en­tif­ic has warned it could lose out on near­ly $1 bil­lion in rev­enue this year due to the US-Chi­na tar­iff war and NIH fund­ing cuts.

Be­cause of the "sub­stan­tial" US tar­iff rates on Chi­na — es­ti­mat­ed to be now at least 125% — Ther­mo Fish­er ex­pects to miss out on $400 mil­lion in rev­enue for 2025, CFO Stephen Williamson said dur­ing its earn­ings call Wednes­day af­ter­noon, ac­cord­ing to an Al­phaSense tran­script. Ther­mo Fish­er makes some prod­ucts at its US fa­cil­i­ties to sell in Chi­na.

The tar­iffs will al­so cause Ther­mo Fish­er’s cost of goods to rise for ma­te­ri­als sourced from Chi­na, which could cut its op­er­at­ing in­come by $375 mil­lion, Williamson said. Chi­na is a key hub of raw ma­te­ri­als for the phar­ma and med­ical de­vice in­dus­try.

Roche and Sanofi said on Thurs­day morn­ing they have been run­ning sce­nar­ios on how US and oth­er tar­iffs could po­ten­tial­ly im­pact their re­spec­tive busi­ness­es. How­ev­er, while Roche has de­tailed spe­cif­ic moves, Sanofi has yet to do so.

Pres­i­dent Don­ald Trump’s tar­iffs, and levies in re­sponse to them, will like­ly con­tin­ue to be a ma­jor talk­ing point dur­ing this quar­ter’s earn­ings sea­son. While coun­try-spe­cif­ic levies are on pause, the phar­ma in­dus­try is close­ly mon­i­tor­ing the force and time­lines of loom­ing in­dus­try-spe­cif­ic tar­iffs.

Roche CEO Thomas Schi­neck­er said in a me­dia call that it has tak­en “mit­i­ga­tion mea­sures” such as build­ing in­ven­to­ry in the US and Chi­na, and mov­ing pro­duc­tion of key med­i­cines over the past week. On Tues­day, the Swiss phar­ma said it will in­vest $50 bil­lion in the US over the next five years, which in­cludes some pre­vi­ous­ly an­nounced projects.

Large phar­ma­ceu­ti­cal com­pa­nies that make drugs around the world have be­gun to ship and stock­pile prod­ucts in­side US bor­ders, in an ef­fort to blunt the im­pact of the Trump ad­min­is­tra­tion’s ex­pect­ed tar­iffs on the in­dus­try, mul­ti­ple com­pa­nies told End­points News.

The moves are a tem­po­rary so­lu­tion that will at most pro­vide a few quar­ters worth of respite, said the com­pa­nies, which spoke to End­points on con­di­tion of anonymi­ty. Many are al­so look­ing at longer-term plans to re­ori­ent cur­rent and fu­ture man­u­fac­tur­ing plans, in­clud­ing pos­si­bly ex­pand­ing man­u­fac­tur­ing op­er­a­tions in the US.

“Every­one in every sec­tor is ex­e­cut­ing the same strat­e­gy: Bring in as much as you can,” said a se­nior ex­ec­u­tive at a large multi­na­tion­al drug­mak­er who spoke to End­points on con­di­tion of anonymi­ty, and whose com­pa­ny is build­ing in­ven­to­ry in the US ahead of the tar­iffs.

Fu­ji­film Diosynth Biotech­nolo­gies' bet on its North Car­oli­na bi­o­log­ics fa­cil­i­ty is pay­ing off, as Re­gen­eron plans to shell out sev­er­al bil­lion dol­lars to move man­u­fac­tur­ing to the site.

Over the next 10 years, Re­gen­eron will pay an es­ti­mat­ed $3 bil­lion to make its com­mer­cial bi­o­log­ic drug prod­ucts at Fu­ji­film's site in Hol­ly Springs, NC, the com­pa­nies said Tues­day. A tech trans­fer is al­ready un­der­way. The deal will near­ly dou­ble Re­gen­eron’s man­u­fac­tur­ing ca­pac­i­ty in the US.

Last April, Fu­ji­film in­vest­ed $1.2 bil­lion to ex­pand the Hol­ly Springs fa­cil­i­ty due to an in­creased de­mand for bi­o­log­ics man­u­fac­tur­ing. The first phase of the site’s op­er­a­tions is ex­pect­ed to be live some­time this year, CEO Lars Pe­tersen told End­points News. 

As­traZeneca CEO Pas­cal So­ri­ot called on Eu­rope to step up in­vest­ments and “pro­tect its health sov­er­eign­ty" as it falls be­hind the US on spend­ing.

His com­ments echo calls from oth­er phar­ma CEOs who are say­ing that Eu­rope needs to bet­ter in­cen­tivize in­no­va­tion. Mul­ti­ple drug com­pa­nies have made re­cent multi­bil­lion-dol­lar com­mit­ments to boost their ca­pa­bil­i­ties in the US.

“The world or­der is shift­ing right now and Eu­rope needs to in­vest more in what re­al­ly mat­ters to it," So­ri­ot said in a state­ment sent to End­points News on Wednes­day. “Eu­rope spends a sub­stan­tial­ly low­er share of GDP on in­no­v­a­tive med­i­cines than the US and, as a re­sult, is falling be­hind in at­tract­ing R&D and man­u­fac­tur­ing in­vest­ments, putting its abil­i­ty to pro­tect the health of its own peo­ple at risk."