Astra CEO warns against US tariffs on medicines

'Great tax policy' is better way, he says

- ASHLEIGH FURLONG

AstraZeneca Plc's Chief Executive Officer Pascal Soriot warned that trade tariffs are not the best way to manage pharmaceuticals and that drugmakers are calling for no additional US levies on medicines.

“We actually believe that a better incentive to attract investment in manufacturing and in R&D is to have a great tax policy that incentivises companies to invest in the country,” Mr Soriot said on Bloomberg TV yesterday.

AstraZeneca believes any impact of levies on the company would be short-lived given its manufacturing presence in the US. Still, Mr Soriot said the industry is calling on the Trump administration not to put levies on imported medicines, after they were excluded from recent announcements.

The drugmaker posted higher profit in the first quarter that still disappointed investors due to weaker than expected sales of key cancer medicines. The company's shares fell as much as 4.7% in early trading in London, and are down about 16% over the past year.