Obesity Drugs Help With Weight Loss But Are Adding Fat Elsewhere

A surge in demand for weight-loss and diabetes medications, paired with fears of incoming tariffs, has propelled Ireland to the center of a pharmaceutical trade boom with the U.S., dramatically widening the bilateral trade imbalance.

This year alone, $36 billion worth of hormone ingredients—essential for popular drugs like GLP-1 treatments and insulin analogs—have been flown from Ireland to the U.S., more than doubling last year’s total.

The Wall Street Journal stated that these pharmaceutical ingredients weighed 23,400 pounds, were highly concentrated, and shipped in temperature-controlled containers.

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Nearly all were bound for Indiana, where Eli Lilly And Co (NYSE:LLY), the maker of blockbuster drugs Zepbound and Mounjaro, is based.

The company began manufacturing these products in its Kinsale, Ireland facility last year and is now preparing to seek U.S. approval for a weight-loss pill, orforglipron.

This airlift of peptide and protein-based hormones, compounds that regulate appetite and metabolism, has played a key role in pushing Ireland to the second spot on U.S. goods-trade deficits, trailing only China.

In the first four months of 2025, the U.S. imported $71 billion in goods from Ireland, with hormone ingredients accounting for nearly half.

The rush stems from both commercial and geopolitical pressures. Former President Donald Trump’s shifting trade policies have triggered stockpiling by pharmaceutical companies racing to beat tariff deadlines.

A Section 232 investigation launched in April could lead to new levies on imported drugs and active ingredients.

The report added that Ireland, home to just 5.4 million people, is a hub for U.S. pharmaceutical manufacturing, partly due to its favorable tax structure.

Giants like AbbVie Inc (NYSE:ABBV) and Merck & Co Inc (NYSE:MRK) produce leading treatments such as Botox and Keytruda there.

Ireland’s central bank attributed a nearly 10% GDP growth in Q1 to soaring pharma exports.

However, the trade imbalance has drawn scrutiny. Ireland was recently added to the U.S. Treasury Department’s currency manipulation watchlist. Dan O’Brien of Dublin’s Institute of International and European Affairs said the attention is “definitely not welcome,” especially as Ireland alone accounts for a large share of the U.S.-EU deficit.

The logistical strain is also evident. Pharma shipments from Ireland to the U.S. more than doubled in March and April, with logistics firms working overtime. Lufthansa Cargo and Kuehne + Nagel reported increased volumes, although activity began to slow in April as U.S. warehouses filled up.

As the White House pushes to onshore drug manufacturing, companies like Lilly and Merck are ramping up domestic investments, aiming to reduce reliance on foreign supply chains amid regulatory uncertainty.

Price Action: LLY stock is down 2.55% at $765.05 at the last check Friday.

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