Europe Urged to Enhance Pharmaceutical Sector Competitiveness

In a recent call to action, Europe has been urged to revitalize its pharmaceutical industry in order to regain its competitive edge on the global stage. Stefan Oelrich, president of Bayer’s pharmaceuticals division and the European Federation of Pharmaceutical Industries and Associations (EFPIA), highlighted the urgent need for enhanced incentives and improved access to innovation for patients. Speaking at the POLITICO 28 Gala Dinner, Oelrich stated, “Europe used to be the pharmacy of the world. Nine out of ten new medicines were discovered in Europe. That’s no longer the case.”

Oelrich’s remarks came against a backdrop of increasing competition from the United States and China, both of which are making significant strides in pharmaceutical innovation and clinical trials. He pointed out that approximately one third of medicines approved by the U.S. Food and Drug Administration (FDA) do not reach European markets, indicating a troubling trend in Europe’s pharmaceutical landscape.

Innovation at Risk

As companies face threats of tariffs from the United States, many are turning their attention away from Europe for potential investments. Oelrich warned that the current environment could lead to a further decline in Europe’s pharmaceutical sector competitiveness. Yet, he expressed optimism about the future potential for investment in the region. Per Franzén, CEO and managing partner at EQT, noted a surge in interest from investors looking to engage with European markets, calling it “an unprecedented interest to invest into Europe.”

Franzén emphasized the critical moment Europe is in, describing it as “a real window of opportunity.” He advocated for a shift towards a more business-friendly and innovation-driven agenda to capitalize on this potential. “In order to make the most out of that opportunity, what we need to do is really to drive a more business-friendly, more innovation-friendly agenda,” he stated.

Addressing the Challenges

Oelrich highlighted that Europe’s challenges are not solely rooted in over-regulation but stem from a lack of substantial incentives for companies to invest in the region. He remarked, “We have some of the best universities in the world that publish some of the coolest science in the world. So there is no reason why this wouldn’t work. And we need to get our act together.”

He urged policymakers to focus on fostering an environment that encourages innovation rather than complicating existing structures with new bureaucratic measures. “Instead of trying to complicate our lives and come up with a new bureaucratic idea, we should come up with ways of how we unleash our forces,” Oelrich concluded.

The future of Europe’s pharmaceutical industry hangs in the balance as leaders call for immediate action to ensure its competitiveness in a rapidly evolving global market. The combination of strong scientific research capabilities and potential investment could provide the impetus needed to reclaim its former status as a leader in pharmaceutical innovation.