Pharmaceutical companies are demanding changes in European regulation as looming tariffs implemented by US President Donald Trump “threaten” billions of planned pharma investments on the continent.
A group of 32 pharma companies sent a letter to European Commission (EC) President Ursula von der Leyen listing requests to avoid an exodus of operations, as reported by French outlet Les Echos. The letter points to €16.5bn ($18.75bn) of planned investments within the next three months alone that could be transferred outside Europe unless urgent action is taken.
Among the signatories were US-based big pharma companies such as Eli Lilly, Pfizer, and MSD, among others. Novo Nordisk, AstraZeneca, and Roche constituted some of the European-headquartered companies.
Trump’s wide-ranging tariffs have already impacted several industries. While pharmaceutical products initially escaped the 2 April blanket tariff, that is likely to change soon. The US President stated his administration will implement “major tariffs” on drug imports. According to Trump, tariffs will incentivise drug companies to relocate their operations to the US.
This is what pharma companies are now leveraging in their policy play to von der Leyen. CEOs warned that the development and manufacturing of medicines will be directed from Europe to the US unless a more favourable regulatory framework is adopted, as per Les Echos. The letter’s signatories pointed to cost disadvantages in Europe versus the US – products in the latter region are sold at significantly higher prices on average. Novo Nordisk’s weight loss medication Wegovy (semaglutide), for example, costs $1,349 per month in the US while only setting patients back £180 ($238) in the UK.
Pharma companies have also requested to simplify drug development regulations in Europe, a continuation of long-running calls from the sector. This particularly pertains to the requirement to conduct multi-country clinical trials for new drugs. Extending intellectual property provisions was also on the agenda, such as increasing orphan market exclusivity to 12 years from the current ten years.
The letter follows a meeting between the European Federation of Pharmaceutical Industries and Associations (EFPIA) and von der Leyen, in which the trade body warned the EC President of an impending exodus in pharma R&D and manufacturing.
The EFPIA cited an internal survey of 18 large and mid-sized pharmaceutical companies that identified more than €100bn in planned capital and R&D investments at risk between 2025 and 2029. Of that, €16.5bn worth of investments is at risk within the next three months alone.
“The US now leads Europe on every investor metric from availability of capital, intellectual property, speed of approval to rewards for innovation. In addition to the uncertainty created by the threat of tariffs, there is little incentive to invest in the EU and significant drivers to relocate to the US,” said the EFPIA in an 8 April statement.
by Robert Barrie
Source: pharmaceutical-technology.com
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