Open letter warns Europe is losing out to US and China

Europe is losing ground to the US and China in the race to develop new medicines, nine of the world’s biggest pharmaceutical companies have warned.

More than $600bn in pharmaceutical investment has been announced in the US and China over the past two years alone. Europe, meanwhile, is taking a shrinking share of global drug research.

In 1990, Europe accounted for 43% of global pharmaceutical R&D, according to the EFPIA. Today, that figure is 31% – “and falling”.

Alarm bells are ringing

The chairs of AstraZeneca, GSK, Novo Nordisk, Novartis, Roche and Sanofi are among those behind the open letter to European governments. Boehringer Ingelheim, Chiesi Group and Ipsen are also represented.

“Europe’s alarm bells are ringing,” they warn. Without urgent action, they say, pharmaceuticals and other strategic industries face a “‘slow agony’ of decline”.

The warning comes as Europe’s share of commercial clinical trials has fallen from 22% in 2013 to 12% in 2023. China’s share, meanwhile, rose from 8% to 18% over the same period.

China has also overtaken Europe in pharmaceutical patents and the development of new medicines, according to the signatories.

The letter estimates that increasing clinical trial activity in Europe could generate €53bn for the economy and support 82,000 jobs.

Access to medicine

The signatories argue that Europe’s competitiveness problem is already being felt by patients.

Around 40% of newly approved therapies never reach European patients, according to figures cited in the letter. Where medicines are launched, the wait for treatment can be nearly 600 days.

The chairs say the problem is partly down to how new medicines are assessed, paid for and made available. So even when a drug has been approved, that does not necessarily mean patients can get access to it.

What do the drugmakers want?

The answer to Europe’s waning competitiveness, they letter argues, is action on several fronts.

The group wants clinical trials to take place faster, stronger protection for intellectual property and policies that encourage digital innovation. It is also calling for more healthcare spending and changes to the systems used to assess and fund new treatments.

Europe currently spends around 1% of GDP on pharmaceuticals, compared with 2% in the US and 1.8% in China, according to figures cited in the letter.

The signatories say action is needed at both European and national level, with governments having a central role in healthcare spending and decisions over access to new medicines.

The chairs conclude: “Europe’s story does not have to be one of decline and dependency; it can be one of renewal and resilience. That choice belongs to national leaders and all of us as citizens.”

Featured image: Alina on Adobe Stock