US President Donald Trump hinted that the pharmaceutical sector would likely be the next one that was struck by definitions. While announcing it on March 28, Trump did not specify the date or the prices concerned, but the decision is likely to lead to more uncertainty in the market.
It is worth noting that the market is already on the negative side, as Trump recently announced an additional 25 % tariff on car imports. It remains to see how a similar step will develop in the medications.
Although the initial interaction on definitions has led to market fluctuations, if such a measure is repeated in the pharmaceutical industry, many shares are still providing a safe bet for investors.
In this case, FinBold has chosen shares that might flourish in an environment based on customs tariffs that affect the pharmaceutical sector.
Pfizer (nyse: pfe)
Pfizer (NYSE: PFE) is in a good position to withstand the Trump tariff agenda, bearing in mind that the company controls the huge manufacturing capabilities in the United States, with a wide range of medicines and vaccines. Trump’s pledge to reproduce medicines to America is in line with the current Pfizer fingerprint.
Unlike competitors who rely heavily on foreign supply chains, especially from China, which face a 20 % double tariff, the local infrastructure of Pfizer can protect it from the high costs that imported drugs may face.
Besides its local advantage, Pfizer also provides a strong value for potential investors. Despite the concerns about the end of the upcoming patents, the company is still financially strong, as the revenue of 2025 is expected between 61 billion dollars and 64 billion dollars, in line with $ 63.6 billion in last year.
With the P/E forward percentage is less than 9, PFIZER is much cheaper than the average health care sector of 18. In addition to its attractiveness, the arrow offers a distribution of 6.7 %, much higher than 1.4 % than the S&P 500.
At the same time, growth is still a priority, as Phazer is actively pursuing acquisitions. The SEAGEN of $ 43 billion in 2023 contributed to additional $ 20 billion in revenue, and the company explores more strategic moves.
As of the time of the press, PFE was traded at $ 25.21, as it ended the last session by approximately 1 %. A year until now, the stock decreased 5.2 %.
Moreover, Wall Street analysts are optimistic, with 14 experts averaged $ 30.64 in the next 12 months. According to analysts in Tipranksand This represents an upside over 21 % with a “moderate purchase” classification.
Elie Lily (New York: Lee)
Elie Lily (its symbol on the New York Stock Exchange: LLY), another American health care company, can benefit from an environment based on customs tariffs, given its heavy investments in local production. The company recently expanded its facility in North Carolina, with a $ 2024 investment in 2024 to enhance diabetes and obesity patients, Mounjaro and Zepbound.
It is worth noting that Eli Lilly is in an advantage because it is already sources of its locally active ingredients or from a tariff friendly areas.
At the same time, the innovation pipeline in the night is reinforced. Its leadership in weight loss and the treatment of diabetes is placed to meet the increasing demand, regardless of the pressure of customs tariffs.
While Trump did not clarify whether life -saving drugs will be exempt from the definitions, the US -based supply chain is insulated against potential disorders.
Moreover, the healthcare giant is still a dominant player in obesity, as Mountrao and Zepbound generates $ 16.5 billion in 2024, which represents 36 % of total revenue. The company discourages manufacturing and expanding new international markets in 2025, providing more than $ 50 billion with production capacity.
At the end of the last trading session, LLY was trading at 822.51 dollars, an increase of 0.1 % modest for today. A year so far, the stock gained 5.7 %.
Elsewhere, based on visions of 19 analysts in Wall Street TipranksLLY is expected to reach the average target price of $ 1022 in the next 12 months, which is approximately 25 % up. Experts set the arrow “Strong purchase” rating.
In short, Pfizer and Eli Lilly have strong basics and local advantages, making them in a good position amid customs tariffs. However, it remains in danger if the wider market conditions deteriorate due to the effects of customs tariffs.
Distinctive image via Shutterstock
