Sandoz (AO) | Buy | Here we go again ...

Research evidence excerpt

Sandoz (AO) | Buy | Here we go again ...

at Sandoz is actually one of the less exposed name to this potential new tariffs at this stage.

Thirdly, we remain highly sceptical on implementation. The two year build timeline is shorter than the roughly three years

typically required to bring a new facility live, and US manufacturing removes precisely the cost advantage on which generic

competition depends. We would expect the most likely outcomes to be higher US prices, market withdrawals and shortages

rather than material reshoring, and we would note that generics account for over 90% of US prescriptions by volume, which

constrains the administration's practical room for manoeuvre ahead of the midterms.

Lastly, we would also flag that bilateral carve-outs remain live. The EU/US Joint Statement of 21 August 2025 established an MFN-

tariff-only regime for generic pharmaceuticals and their ingredients, described by the European Commission as effectively zero or

close to zero. The February 2026 US/India pact reportedly provides for negotiated outcomes on generic pharmaceuticals and

ingredients. Hence, at this stage we would caution that last night's announcement demonstrates these frameworks do not

preclude unilateral threats, but they do provide a negotiating anchor and a plausible route to sectoral exemption before 2028.

So overall, we would still expect the stock to open slightly in the red this morning, but we would buy on any weakness beyond

-1%, as we see little financial risk at this stage for the stock.

It's tweeting season again, diving into What Trump announced last night

In a post on Truth Social late on 21 July 2026, President Trump set out a staged tariff schedule for generic medicines imported

into the US, framed explicitly as a reshoring mandate.