Mesoblast Ltd (NASDAQ:MESO, ASX:MSB) has confirmed its lead cell therapy products are manufactured in the United States and will not be caught up in potential new tariffs on imported pharmaceuticals flagged by President Donald Trump.
The statement comes after Trump reiterated his intent to impose tariffs of 100% on branded and patented medicines produced overseas, part of a broader push to reduce the US trade deficit and encourage domestic manufacturing. The threat has unsettled global pharmaceutical and biotech stocks with cross-border supply chains.
Mesoblast said its flagship therapy Ryoncil®, used in children and adolescents with steroid-refractory acute graft versus host disease, along with other allogeneic cell therapies in development, are formally designated “US country of origin” products under FDA and Customs guidance. That status means they are not subject to import levies.
Despite the clarification, shares in Mesoblast were down 2.8% at A$2.42 by 3:30 pm AEST, broadly in line with a softer session for healthcare stocks on the ASX. The stock remains higher over the past month.
Trade and pharma
Trump’s tariff plans, outlined earlier this year and reiterated in recent speeches, target sectors ranging from autos and electronics to pharmaceuticals. He has argued that foreign-made medicines are a key contributor to the trade deficit, and that levies would spur more manufacturing on US soil. The proposals add a fresh layer of policy risk for companies with international production footprints.
By contrast, Mesoblast underscored that its supply chain is U.S.-based, with therapies derived from US donors and manufactured domestically. While the company continues to pursue partnerships in Japan, Europe and China, its US production base reduces immediate exposure to the policy uncertainty.