Potential U.S. tariffs have minimal effect on Prostatype Genomics' operations in the U.S.
Prostatype Genomics wants to clarify that yesterday's proposed U.S. tariffs of 20 percent on goods imported from the EU have almost no effect on the company's U.S. operations. This is because the EU-made laboratory kits used in Prostatype® testing only represent a very low portion of the sales price. All other activities related to testing, marketing and sales in the U.S. are carried out on-site in the U.S. via a wholly owned U.S. subsidiary and are thus not affected by the proposed tariffs at all.
CEO of Prostatype Genomics, Fredrik Rickman, comments:
"Our assessment is that the proposed tariffs from the U.S. administration will have a very limited, if any, impact on our operations in the U.S. The explanation is that we are well established in the U.S. with a local infrastructure for testing, marketing and sales of our genomic test Prostatype® via a wholly owned subsidiary, and the only component manufactured in the EU and imported into the U.S. represents a very small part of the sales price.”
As previously communicated, Prostatype® is already in clinical use in the U.S. market with all necessary regulatory licenses and accreditations in place. The company has recently communicated positive preliminary results from a U.S. study and is in the final phase of its Medicare application for reimbursement. The choice to establish a local infrastructure at an early stage in the U.S., which is expected to become the company's main market from 2025, was made, among other things, to minimize the risk of the impact of tariffs or other restrictions for European companies.
“Like many other companies, we are of course following developments closely, but thanks to proactive strategic decisions by the Board of Directors and management, our operations in the U.S. will continue as usual,” Fredrik Rickman concludes.
For more information, please contact:
Fredrik Rickman, CEO Prostatype Genomics AB
Telephone: +46 (0)73 049 77 01
Email: fredrik.rickman@prostatypegenomics.com
About Prostatype Genomics AB
Prostatype® is a genomic test that is available to patients and treating urologists as a complementary decision basis for the question of treatment or no-treatment of prostate cancer. The test was developed by a leading research group at Karolinska Institute and is provided by Prostatype Genomics AB.