Some of the biggest news and trends captured in PharmaVoice’s newsletter this week. Sign up here to receive the newsletter daily.
Big Pharmas deal their way out of tariffs
Branded drugs could now get slapped with a 100% tariff rate that went into effect last week, but there’s a big catch — many Big Pharmas won’t feel the pinch. The levies, which were originally signed in April, exempt companies with an onshoring plan that have struck most-favored nation pricing plans with the Trump administration. So far, 17 major pharma companies fall into that camp.
The new measure also left generic drugs off the table. Instead, Trump has a separate plan for generics that could lift tariffs to 200% in a few years. Will this fresh tariff threat finally inspire generic drug producers to set up shop in the U.S.? This week, we took a look.
BMS’ quiet M&A year
Bristol Myers Squibb doesn’t feel any immediate “compulsion to chase deals,” CEO Christopher Boerner said on the company’s second-quarter earnings call last week.
The company has, in fact, had a quiet year for dealmaking compared to its Big Pharma peers. So far, BMS’ biggest move has been a sweeping, 13-program drug development pact with Hengrui Pharma that could be worth up to $15.2 billion, with BMS paying Hengrui up to $950 million including $600 million in upfront cash.
Then came the reported megamerger talks with AstraZeneca. Those reports were quickly disputed, but the strategic question lingered: What would BMS have to gain? This week, we looked at why a megamerger could appeal to BMS and companies in a similar position, and whether Big Pharma is ready to go big again.
Merck’s earnings dip
Merck’s recent dealmaking spree came back to bite it last quarter. A one-time charge from its recent acquisition of Terns Pharmaceuticals hit Merck’s profit outlook for 2026, the company reported yesterday.
But that speedbump was offset by good news including a strong performance by its flagship cancer drug Keytruda, which beat sales expectations, and a positive sales outlook driven by new launches gaining ground.
Still, as Keytruda barrels towards key patent cliffs, the company is in the midst of a metamorphosis via M&A that Merck is crystalizing for its next era. This week, we featured a Q&A with a Merck executive about the company’s strategy to reinvent itself with the next generation of medicines.
