Key facts
- European drugmakers are warning of industry decline due to competition from the US and China.
- Nine major drugmaker chairs called for increased government spending, faster trials, and IP protections.
- The chairs stated that about 40% of new therapies never reach European patients.
- Europe's share of global drug research and development has fallen to 31% from 43% in 1990.
- The bloc's share of commercial clinical trials has halved to 9% in the last decade.
- Europe spends 1% of GDP on pharmaceuticals, compared to 2% in the US and 1.8% in China.
European drugmakers are sounding the alarm that the continent's pharmaceutical industry is at risk of falling behind the United States and China due to slower regulatory processes and insufficient investment.
In an open letter published on their websites, the chairs of nine major drugmakers, including AstraZeneca, GSK, Novo, Novartis, Roche, Sanofi, Boehringer Ingelheim, Chiesi, and Ipsen, urged the European Union and its member states to boost spending on medicines, accelerate clinical trials, and strengthen intellectual property protections. They warned that without urgent action, the sector faces a "slow agony" of decline.
The signatories highlighted that approximately 40% of new therapies fail to reach European patients. Furthermore, Europe's share of global drug research and development has decreased to 31% from 43% in 1990, and its participation in commercial clinical trials has halved to 9% over the past decade. This situation is attributed to European systems and policies moving more slowly than those in the US and China, which attract significantly larger pharmaceutical investments.
Europe currently allocates about 1% of its GDP to pharmaceuticals, while the United States spends 2% and China spends 1.8%. Healthcare lawyer Ron Lanton noted that while Europe possesses strong scientific capabilities, companies are increasingly factoring in the more aggressive policies in the US, which influence investment, product launches, and pricing decisions. He emphasized that competitiveness depends on the entire pathway, from clinical trials to patient access and reimbursement.