Swiss Market Index Remains in Green; Sandoz, Lonza Shares Down
Swiss stocks remained in positive territory on Wednesday, with the Swiss Market Index closing 0.12% higher, as investors took stock of the latest earnings and economic data releases, alongside fresh US tariff threats.In a post on social media platform Truth Social, President Donald Trump said the tariff on generic drugs being brought into the US will be increased to 100% in 2028 and to 200% thereafter. "This is done in order to RESHORE Generic Pharmaceutical Production into America, with a penalty to those Companies that decide not to build Plant and Equipment within the stated period of time given to them," he added.Swiss generic drugmaker Sandoz Group (SDZ.SW) said in a statement tothat it will pursue discussions with stakeholders and policymakers following Trump's proposal to raise the tariff rate. Its shares fell 3.88% at closing.Meanwhile, Lonza Group's (LONN.SW) first-half sales amounted to 3.37 billion francs, up from the restated 3.03 billion francs a year before. Profit for the period also rose to 595 million francs from 426 million francs, supported by double-digit sales growth at constant exchange rates at all three of the group's business platforms."Lonza delivered a strong set of H1 2026 results, with revenue 1% below consensus but EBITDA 4% above. FY 2026 Core EBITDA margin outlook has been increased to 33-34%, from 'above 32%' previously, with the 11-12% CER sales growth guide unchanged. Advanced Synthesis and Specialized Modalities both beat consensus, while Integrated Biologics missed, but the company confirms that there have been no delays, and this division is executing as expected," RBC Capital Markets said in a quick take note. The contract development and manufacturing organization's shares were down 4.89%.Switzerland-listed vacuum valve manufacturer VAT Group (VACN.SW) and electronic components company Cicor Technologies (CICN.SW) also published financial results.Outside Switzerland and in economic news, the annual inflation rate in the UK eased to 2.6% in June from 2.8% in May, while the annual core inflation rate held steady at 2.6%.Investors also continued to monitor developments in the Middle East after US Secretary of State Marco Rubio said the US is prepared to pursue diplomacy with Iran while noting that Tehran has yet to demonstrate a serious commitment to talks. Ongoing concerns over shipping disruptions in the Strait of Hormuz and the Red Sea remain.
