Sandoz falls after Trump's tariff plan on generic drugs

The stock, which has gained 12.4% year to date including Wednesday's session, is the worst performer of Switzerland's mid-cap index .SMIM.

Shares in Swiss pharmaceutical company Sandoz fall around 3% after U.S. President Donald Trump said all generic drugs to face no import duties for 2 years, then 100% and 200% tariffs later if they do not produce in the U.S.

Vontobel says the new regulation will hit predominantly China and India, where most generic drugs are manufactured.

"Sandoz, the global leader in off-patent medicines, will also be hit as Sandoz has no manufacturing in the U.S.," the broker adds.

Vontobel says the push from the U.S. government wants to revert the situation in which affordable generics production has moved to cheaper countries.