UK pharma group Hikma ploughs $1bn into US manufacturing as tariff threat lingers
Medicines firm Hikma Pharmaceuticals plans to invest $1billion into US manufacturing and research and development over the next five years.
The London-headquartered firm told investors on Monday the investment would expand its domestic capabilities 'to develop, produce and deliver a broad range of medicines needed by the US healthcare system to treat patients nationwide'.
Hikma specialises in generic medicines - medications created to be the same as a brand-name drug, but usually sold at a lower cost.
It comes as the UK-US trade deal comes into effect today, leaving UK carmakers with reduced tariffs of 10 per cent and removing levies on the aerospace sector entirely.
However, Britain's pharmaceutical sector still faces the potential for further tariffs down the line, as well as recent suggestions the White House could move to clamp-down on the price of medicines in the US.
UK pharma sold £6.6billion worth of products to the US last year, meaning the sector is Britain's second-biggest export to the country.
President Donald Trump's threat to end exemptions on pharma tariffs, which are driven by a 1995 World Trade Organisation deal, has sparked fears that disruption to the sector's highly complex supply chain could have implications for UK pharmacies and patients.
Hikma said on Monday it has provided access 'to a wide range of generic medicines at a lower cost than branded products' since operating in the US since 1991.
The group's 'America Leans on Hikma' strategy plans to increase the volume of 'essential medicines' developed and produced across its R&D and manufacturing sites in Columbus and Cleveland, Ohio and New Jersey.
Hikma said: 'This next phase of expansion will help to strengthen Hikma's portfolio of more than 800 medicines and increase the company's US-based capacity to produce large volumes of high-quality and affordable medicines for American hospitals, providers and patients.'
President of Hikma's generics business Dr. Hafrun Fridriksdottir added: 'We are proud to continue our ongoing investments in US manufacturing and R&D to better serve the needs of American patients.
'Hikma and our 2,300 dedicated US people are committed to supporting healthier communities nationwide by providing Americans with a steady and reliable supply of domestically produced quality medicines.'
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