A coalition of Europe’s leading pharmaceutical companies has warned that the continent is falling behind the United States and China in drug development and investment, urging European governments to take immediate action to preserve the region’s competitiveness. In a letter addressed to political leaders including Andy Burnham, the chairs of nine major pharmaceutical firms emphasized the need to treat the medicines sector as strategic infrastructure crucial to health sovereignty.
The letter, titled “Europe is losing the pharma investment race – but the comeback is within reach,” highlights the sector’s historical importance to Europe’s postwar economy. It notes that the pharmaceutical industry supports millions of highly skilled jobs and has generated a trade surplus exceeding €220 billion (£189 billion) for the European Union. However, the signatories warn that this position is under threat, citing over $600 billion (£450 billion) in pharmaceutical investments announced in the US and China over the past two years as evidence of growing competition.
Signatories include the chairs of Britain’s AstraZeneca and GSK, Denmark’s Novo Nordisk, Germany’s Boehringer Ingelheim, Italy’s Chiesi Group, France’s Sanofi and Ipsen, and Switzerland’s Novartis and Roche. They call on European governments to create environments favorable to investment in next-generation medicines, warning that failure to do so risk losing critical advances in medical innovation.
According to data from the European Federation of Pharmaceutical Industries and Associations (EFPIA), Europe’s share of global pharmaceutical research and development has declined from 43% in 1990 to 31% today. The region’s proportion of commercial clinical trials has halved from 18% to 9% over the past decade, with only 4% of these trials focused on innovative cell and gene therapies. Meanwhile, China’s share of global clinical trials has surged from under 10% to nearly 30%.
The letter also underscores challenges related to patient access, noting that nearly half (49%) of newly approved therapies last year failed to reach European patients, an increase from 46% in 2019. Delays in access varied widely, with median wait times ranging from 56 days in Germany to 1,201 days in Romania. EFPIA attributes these disparities to regulatory inefficiencies and limited healthcare budgets in some nations.
The industry leaders estimate that closing the clinical trials gap could potentially generate €53 billion and create 82,000 jobs within Europe. They emphasize the importance of aligning public and private efforts to reverse the region’s decline in competitiveness and to "unleash a new era of medical discovery."
The pharmaceutical industry’s relationship with European governments has faced recent tensions, including a dispute between the UK government and the industry last year over drug pricing and availability of new treatments. The British government subsequently committed to increasing annual NHS spending on medicines following external pressures, including interventions from former US President Donald Trump, who criticized the high cost of drugs in the United States.
The letter concludes by urging national leaders to collaborate with the pharmaceutical sector to ensure that Europe maintains its position in the global biopharmaceutical landscape, arguing that modern medicines should be regarded as essential infrastructure akin to sectors like defense or energy.