European Pharma Leaders Push for National Reforms to Boost Investment

Dow Jones09-22 22:14
 
 

Several drugmakers urged European authorities to increase health budgets and speed up approvals for new medicines, warning the region is losing out to the U.S. and China in the race to attract investments.

"Over $600 billion in pharmaceutical investment has been announced in the U.S. and China in the last two years alone," the chairs of nine European pharmaceutical companies said in an open letter published Tuesday. "European governments must create conditions that attract investment in next-generation medicines before it's too late."

The letter--signed by chairs of companies including Roche, Novartis, AstraZeneca, Novo Nordisk, GSK and Sanofi--said Europe is falling behind China in terms of global share of clinical trials, pharmaceutical patents, and the development of new medicines, and called on national leaders to work with the industry to boost the continent's competitiveness.

The European Union can accelerate clinical trials, protect intellectual property and provide fiscal flexibility, but it is up to national governments to decide how much to spend on health budgets and how quickly new medicines are assessed and funded, the letter said.

Germany, Europe's biggest economy, earlier this year passed a law that requires drugmakers to offer bigger discounts on medicines, which prompted several industry executives to voice concerns about European governments' spending on new pharmaceuticals and warn that the launch of new medicines could be delayed or skipped altogether.

Around 40% of newly approved therapies never reach European patients, according to the letter.

"We recognise the fiscal pressures many face. But just like defence or energy, modern medicines should be treated as vital infrastructure and not be left to others to provide," the letter said.

 
 

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