Bayer US head says tariffs will not affect its 2026 forecasts
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The 120 metres high Bayer Cross, logo of German pharmaceutical and chemical maker Bayer AG, consisting of 1710 LED glass bulbs is seen outside the industrial park "Chempark" of the chemical industry in Leverkusen, Germany, September 23, 2023. REUTERS/Wolf
By Michael Erman
NEW YORK, April 7 (Reuters) - A top Bayer AG executive said on Tuesday the German drugmaking and crop science company saw no need to adjust its 2026 forecasts because of tariffs on imported pharmaceuticals announced by the U.S. government last week.
"We feel that we've appropriately anticipated tariffs as we think about our 2026 guidance," Bayer Pharmaceuticals Chief Operating Officer and Bayer U.S. President Sebastian Guth told Reuters.
Guth said Bayer was particularly comfortable with its forecast as the U.S. has committed to honoring the trade deal it signed with the European Union last year that caps tariffs on most goods from those countries - including medicines - at 15%.
In March, Bayer said it expects 2026 EBITDA before special items of 9.6 billion to 10.1 billion euros, compared with EBITDA before special items of 9.669 billion euros in 2025.
President Donald Trump signed an executive order last week imposing tariffs on branded pharmaceuticals imported into the U.S. unless manufacturers agree to government drug pricing deals or commit to making their products domestically.
The tariffs are scheduled to begin for most companies in September.
Sixteen of the world's biggest drugmakers have signed deals with the U.S. government that exempt billions of dollars' worth of drugs from tariffs, but Bayer was not initially invited to the table. Guth declined to comment on whether the company has spoken with the Trump administration about avoiding the fees.
Britain has also finalized a U.S.-UK pharmaceutical trade deal, setting out tariff-free access for UK-made medicines to the U.S. in return for paying higher prices for new medicines.
Under the deal, Britain pledged to increase medicines spending from 0.3% of GDP to 0.35% by 2028 and 0.6% by 2035. Guth flagged that deal as a blueprint for how wealthy countries around the world can revisit changes to their pricing structures.
"There's an acknowledgment that it isn't going to happen overnight, but will happen over time," Guth said.
(Reporting by Michael ErmanEditing by Rod Nickel)
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