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On Monday, June 12, 2023, vials are moving across the conveyors at the Novo Nordisk A/S production facilities in Hillerod, Denmark, June 12, 2023.
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Economic growth of Denmark, which, according to economists, is associated with “exceptional overload” in pharmaceutical exports, it is assumed that this year we are weakening, but the upcoming threat of tariffs on the pharmaceutical industry will not be a big factor, the International Monetary Fund reports.
IMF said in Tuesday in Last report on the northern country It expects Denmark, whose economy increased by 3.7% in 2024, this year its production up to 2.9% and 1.8% in 2026.
However, the Fund noted that Denmark will be protected from potential tariffs on pharmaceutical imports, as most Danish narcotic products are produced in the country or cross its borders.
Danish drug manufacturers are becoming more dependent on the “trading and processing” system, in which most of the cost of medicines is explained by the intellectual property laid in them with drugs that contract manufacturers in other countries to produce and send products.
“The United States is a key trade partner; however, exports produced in Denmark, passing through customs, is only 3 percent of total exports, limiting the direct impact of tariffs on the Danish economy,” the IMF said, adding that “direct influences from the tariffs will be restricted, but conceded view ”.
In 2026, according to the fund, the medium -term growth is projected by approximately 1.5%, “reflecting the mature pharmaceutical sector and decreasing the working age.”
Last fall, IMF economists noted that Denmark’s growth was due to “exceptional overworks” in its pharmaceutical While the rest of the economy remained “relatively muted”.
The Foundation highlighted the Danish pharmaceutical gigantic Novo nordiskMass increase in foreign demand for diabetes and weight loss, Wegovy and Ozempic as a growth driver, noting that the company’s sales as a share of Denmark increased from 1% in the early 1990s to 8.3% in 2023.
The upcoming threat creates Trump
The larger winds for a wider European pharmaceutical industry are the threat of US President Donald Trump to impose drug import tariffs.
Pharmaceuticals were exempted from the original “mutual” Trump tariff regime announced in April, but since then the president aimed the world industry, threatening to accommodate separate levies on pharmaceuticals exported to the states and demanding that US drug prices fall.
Signing his intention on this issue, Trump signed an executive order on Monday by sending drug producers to reduce drug prices to match much lower cost paid abroad.
The president did not refer to certain countries, but it signaled that it would be focused on other developed countries because “there are some countries in need of additional assistance, and that’s okay.”
“Basically what we do is alignment,” Trump said during a press -Monday press. “We are going to pay the lowest price in the world. We will receive the one who pays the lowest price, this is the price we are going to get.”
The White House representatives do not reveal to what medicines the order will apply, but stated that it would affect the commercial market as well as Medicare and Medicaid.
In 2022, the US prices in all drugs (brands and generations) were almost three times more than prices in 33 OECD comparisons, According to data published in 2024, the US Department of Health and Human Services.
US President Donald Trump shows on the day he signs an order for prescription drug prices during a press conference in the Roosevelt’s room in Washington, USA, May 12, 2025. Reuters/Nathan Howard
Nathan Howard | Reuters
Threat of tariffs on pharmaceutical imports was described as a “sword of premix” hanging over the pharmaceutical industry in EuropeOf the executives who warn that the outcome of large continental players may be in the United States to avoid leisure.
European Federation of Pharmaceutical Industry and Associations (EFPIA), representing large European pharmaceutical companies – including Novo Nordisk, Bayer. Astrazeneca. Gsk. Rosh and Sanfi – In April, the President of the European Commission Ursula von der Leyen warned that “if Europe does not put a rapid, radical change in policy, then pharmaceutical research, development and production will be increasingly directed to the US” “
It states that a survey of its members showed that the result was about 100 billion euros (112 billion dollars) of capital costs, research and development.
“Now the United States leads Europe in every investor metric from the availability of capital, intellectual property, the speed of approval for innovation. In addition to the uncertainty created by the threat of tariffs, there is little incentive to invest in the EU and significant drivers to move to the United States,” said EFPIA.
– Annika Kim Kim Constantino and Karen Gilchrist in this story reported on the story
