Fresenius on a Roll: Navigating Trump Tariffs with Local Production
Fresenius strengthens its position - intends to avert Trump's tariffs - Fresenius is augmenting its production and will circumvent Trump's imposed tariffs
Hey there!
Here's some juicy news about pharmaceutical titan, Fresenius. They're on a roll and engaging in chats with the U.S. government to dodge potential pharmaceutical tariffs under the regime of President Trump. The Q1 results have got CEO Michael Sen all jazzed, thinking they'll nail their annual targets, even with the looming tariff threat.
The U.S. government's yet to include pharmaceutical imports in their colossal tariff package, but there's a review happening right now. "We're hobnobbing with the local folks," claims Sen. These conversations provide Fresenius an opportunity to showcase their crucial role in supplying essential, affordable generic medications to the American healthcare system, usually in short supply.
The U.S. represents a mighty market for Fresenius; one they're still investing in with zest. Currently, they rake in around 10% of their revenue from the U.S. through their generic subsidiary, Kabi. An impressive 70% of the generics Kabi knocks out in the U.S. are pumped out domestically, reducing their vulnerability to import tariffs compared to foreign competitors like those based in India and China.
Q1 was a growth spurt for Fresenius. Revenue, adjusted for special items, jumped 7% year-on-year to a whopping 5.63 billion euros. Adjusted earnings before interest and taxes (EBIT) grew 4% to 654 million euros. Kabi's cost-cutting program and core business growth in drugs, clinical nutrition, and medical technology provided some welcome tailwinds.
The consolidated net income sprung up 12% to 416 million euros, excluding the stake in dialysis specialist, Fresenius Medical Care. Fresenius has set its sights on boosting revenue outside of special and currency effects by 4-6% by 2025. They're aware of risks like unfavorable tariffs, but they only factor these into their calculations when they can reasonably estimate them.
- Fresenius SE
- Pharma
- Donald Trump
- USA
- Michael Sen
- Bad Homburg
- U.S. President
- The pharmaceutical giant, Fresenius SE, is actively engaging in discussions with the U.S. government, particularly with President Trump, to avoid potential tariffs on pharmaceuticals.
- Michael Sen, the CEO of Fresenius, has expressed optimism that the company will meet its annual targets despite the tariff threat, thanks to local production of pharmaceuticals in the U.S.
- Fresenius' subsidiary, Kabi, generates about 10% of its revenue from the U.S., with 70% of its U.S.-produced generics coming from local production, reducing vulnerability to import tariffs compared to competitors based in India and China.
- In Q1, Fresenius reported a revenue growth of 7% year-on-year, reaching 5.63 billion euros, with adjusted EBIT growing 4% to 654 million euros. The growth was attributed to Kabi's cost-cutting program and core business growth in drugs, clinical nutrition, and medical technology.
- Despite risks like unfavorable tariffs, Fresenius aims to increase revenue outside of special and currency effects by 4-6% by 2025, factoring in potential tariffs only when they can reasonably estimate them.
