Biopharma Braces for Tariff Impact: Vertex, Alnylam Lead the Way

As the biopharmaceutical industry braces for potential tariff impacts, Vertex Pharmaceuticals and Alnylam Pharmaceuticals stand out as companies best positioned to weather the storm. With diversified portfolios and innovative pipelines, these two giants are poised to mitigate risks associated with geopolitical uncertainties, while other players like Regeneron and Biogen face more significant challenges.

Vertex Pharmaceuticals has made significant strides in diversifying its revenue streams. The company's recent approval of ALYFTREK, a next-in-class combination CFTR modulator for cystic fibrosis, and its progress in pivotal trials for suzetrigine in acute pain and peripheral neuropathic pain (PNP) demonstrate a robust pipeline that can offset potential revenue losses from tariffs. Vertex's global expansion, with more than 50 authorized treatment centers (ATCs) activated for CASGEVY, further reduces reliance on any single market.



Alnylam Pharmaceuticals, on the other hand, has a diversified product portfolio with four wholly-owned commercial medicines: ONPATTRO, AMVUTTRA, GIVLAARI, and OXLUMO. The company's 2024 net product revenues of over $1.6 billion, representing a 33% growth compared to 2023, highlight its strong market position. Alnylam's pipeline advancements, including the expected U.S. FDA approval for vutrisiran by March 23, 2025, ensure a steady stream of new treatments, reducing the impact of tariffs on existing products.

In contrast, Regeneron and Biogen have more concentrated portfolios, with a significant portion of their revenue coming from a few blockbuster drugs. Regeneron's EYLEA and Biogen's ADUHELM are major revenue drivers, making them more vulnerable to tariff impacts. Any disruption in the sales of these drugs can have a significant financial impact, as seen in the past with regulatory setbacks and pricing pressures.

Vertex and Alnylam have implemented several regulatory and market strategies to mitigate risks associated with tariffs and other geopolitical uncertainties. Vertex has secured global regulatory submissions for its approved medicines, expanded its commercial and clinical presence globally, and negotiated agreements with healthcare systems to ensure broad and equitable access for patients. Alnylam, meanwhile, has secured additional global approvals and reimbursement for its medicines and announced its 2025 combined net product revenue guidance, reflecting confidence in achieving non-GAAP operating income profitability despite potential geopolitical uncertainties.

In conclusion, Vertex and Alnylam's diversified portfolios and innovative pipelines position them to withstand potential tariff impacts more effectively compared to other biopharma companies like Regeneron and Biogen. Their global expansion and steady stream of new treatments ensure a more resilient business model in the face of potential tariff disruptions. As the industry braces for potential tariff impacts, these two companies stand out as leaders in mitigating risks and ensuring sustained growth.