Novo Nordisk (NVO) is not concerned by the ongoing US trade war and the 25% tariff set to go into effect for pharmaceutical companies next week.

CEO Lars Jørgensen told reporters Thursday, "For Novo Nordisk, I do not worry a lot about tariffs."

He noted the company already has a globalized setup for manufacturing near the markets the products are being sold in, including for active pharmaceutical ingredients (API) — the base ingredients in drug formulas. APIs are largely produced in China, but Novo produces its API only in the US and Denmark, he said.

"We do have products moving across borders, we actually also export from the US, and of course in a world with a lot of tariffs, we can redirect products in different ways so they become more localized and maybe fewer crossing borders," Jørgensen said.

He added that the US market relies heavily on generic drugs rather than branded products, which Novo Nordisk does not sell.

Competitor Eli Lilly (LLY) recently announced a $27 billion investment in manufacturing in the US, including for APIs — in three of four planned manufacturing sites announced. The states they will be located in are not yet known.

REUTERS / Reuters

Lilly recently built out a new manufacturing site in North Carolina, dedicated to producing GLP-1 injectable pens. Novo is also already in North Carolina, with a $2.5 billion API production site, and is building out the next step in the supply chain — a $4.1 billion fill-and-finish factory — nearby.

The process for APIs involves large tanks that continuously produce the ingredients, using yeast fermentation to help grow the biologic products, making it a cost-effective investment, Jørgensen said.

"It's a given that you cannot have small facilities spread around the world, because then you will not get to the same scale. So I'm very comfortable in that setup and being able to supply the US market also from that setup," he said.

"I'm not particularly worried about tariffs' impact directly on Novo Nordisk."

Anjalee Khemlani is the senior health reporter at Yahoo Finance, covering all things pharma, insurance, care services, digital health, PBMs, and health policy and politics. That includes GLP-1s and tariffs, of course. Follow Anjalee on social media platforms X, LinkedIn, and Bluesky @AnjKhem.

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