Geopolitics Tops Life Sciences Risk Ranking
A Willis report ranks geopolitical tensions as the leading economic risk for life sciences companies in 2026-2027, as US pharmaceutical tariffs expand.
Updated on Nov. 6, 2026 in International Trade
Live Poll
Do you expect prescription drug prices to rise over the next two years?
Willis released a report, published with Oxford Analytica, ranking geopolitical tensions as the top economic risk facing life sciences companies. The findings come as US pharmaceutical tariffs expanded on September 29 to mid-sized and smaller drugmakers, with rates reaching 100%.
Why it matters
Governments increasingly view life sciences as a strategic sector, and trade policy increasingly shapes manufacturing and investment decisions. Companies face pressure to reassess where they produce and how they price their products.
Pharmaceutical tariffs reach up to 100% and began July 31 for 17 large manufacturers before expanding September 29, while goods from the EU, Japan, South Korea and Switzerland face a 15% duty cap under existing trade deals. Whether generics and biosimilars will be added to the tariffs has not been determined.
The players
Willis
Willis is a global insurance broker and risk advisory firm that publishes annual analyses of risk trends across industries.
Oxford Analytica
Oxford Analytica is a research and analysis firm that provides geopolitical and strategic risk assessments to governments and corporations.
The details
The panel of senior executives and risk professionals identified five leading risks through a survey across three regions. Companies that pair an onshoring plan with a most-favored-nation pricing agreement can qualify for zero tariffs through January 2029, while others face rates that can reach 100% from February.
Timeline
July 31: US pharmaceutical tariffs began for 17 large manufacturers.
September 29: Pharmaceutical tariffs expanded to mid-sized and smaller drugmakers.
February: Rates of up to 100% take effect for clients without an onshoring plan and most-favored-nation pricing agreement.
January 2029: The zero-tariff window for qualifying companies ends.
Market Dynamics
The tariff expansion arrives alongside WTW's 2027 Global Medical Trends Survey, which projects a global medical cost trend of 10.2% for 2027 after 10.1% for 2026. Together these figures point to sustained cost pressure on the sector as trade policy and healthcare spending both climb.
Investors holding life sciences equities should weigh how tariff exposure and the January 2029 zero-tariff window affect company earnings. Companies without an onshoring plan and pricing agreement face the highest risk of rates reaching 100%.
The takeaway
Trade policy is now a central factor in life sciences planning, so firms that combine onshoring with pricing agreements are better positioned to manage tariff exposure. Monitoring the tariff timeline through January 2029 will be important for anyone assessing sector risk.
Further reading
For more on how cross-border policy shapes markets, see International Trade.
Source note: This article includes information reported by Insurance Business.
Live Poll
Do you expect prescription drug prices to rise over the next two years?
