Pharmaceuticals Warn EU: Take Action or We Leave Europe

In a collective letter sent to the President of the European Commission, Ursula von der Leyen, on April 11th, 32 pharmaceutical companies urged the EU to take bold measures to prevent investors in the pharmaceutical sector from moving to the USA amid trade tensions. These companies, including major names like Novo Nordisk, Pfizer, Eli Lilly, Roche, Sanofi, Merck, GSK, and Servier, promised to increase their share in the European market, which currently stands at 22.7% of global sales, provided that ‘bold actions’ are taken for the pharmaceutical industry in Europe. Without these measures, they warned that planned investments worth €16.5 billion could be relocated outside Europe within three months. The firms seek a competitive European market that attracts, properly evaluates, and rewards innovation, warning that continued trade tensions could further reduce investments in research and development and production within the EU. They suggest revising the drug pricing policy in Europe, which is less favorable compared to the U.S., and updating the regulatory framework. Additionally, they call for accelerating clinical trial processes across multiple countries and increasing resources for the European Medicines Agency to approve innovative treatments. Furthermore, they request Brussels to suspend and reassess the implementation of directives aimed at improving waste processing before disposal to avoid disproportionate burdens on the sector. While pharmaceutical products are currently exempt from tariffs imposed by Washington, several groups have recently announced investments to boost production in the U.S., such as $27 billion by Eli Lilly, $55 billion over the next four years by Johnson & Johnson, and a $1 billion vaccine manufacturing facility by Merck in North Carolina. Swiss giant Novartis announced on Thursday an investment of $2.3 billion over five years in the U.S. to produce drugs destined for American patients.