1.As of the date of the announcement, pharmaceuticals are temporarily listed on the exemption list; therefore, there is currently no impact on the company.
2.If the U.S. were to impose tariffs on pharmaceuticals in the future without any exemption clauses, TaiMed estimates that the current inventory of its HIV drug Trogarzo in the U.S. is sufficient to support sales through the end of 2026, and thus would not be affected by the tariffs.
3.The company’s CDMO (Contract Development and Manufacturing Organization) business serves clients in the clinical trial stage. As such, the business is service-oriented and not based on commercialized products, and therefore should not be subject to tariffs.
With regard to reciprocal tariffs by US, TaiMed's product Trogarzo is currently primarily sold in the U.S. market. Over the past years, TaiMed has collaborated with international strategic partners on the manufacturing of the product and has established a robust warehousing and distribution network in the United States, the planned shipment through next two years has already been delivered to US storage to ensure the long-term stability of Trogarzo’s commercial supply. Therefore, even if reciprocal tariffs are extended to cover pharmaceuticals sold in the US, there would be no financial or operational impact on the US sales of Trogarzo. To address various uncertainties, TaiMed continues to actively work with partners to expand Trogarzo’s market beyond the U.S., with the goal of international visibility and positively enhancing business performance. Furthermore, the CDMO (Contract Development and Manufacturing Organization) business involves products that are through in the clinical trial phase at the client end and have not yet been commercialized. Therefore, this business is service-oriented and should not be subject to tariff.”, said Dr. Jimmy Chang, CEO of TaiMed Biologics.
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