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Once the go-to location for global drugmakers, Europe is now being squeezed by President Donald Trump’s aggressive trade and drug-pricing policies on one side, and China’s explosive biotech boom on the other.
The pharma industry is a cornerstone of Europe’s economy, but the continent’s declining competitiveness has companies looking elsewhere to place investments. And the issue isn’t just economic. New launches of critical medicines are at stake, as prices and regulations discourage companies from launching them on the continent.
Uncertainty in the U.S. and threat of most-favored-nation pricing “has given pharma companies a lever to pull the negotiations with European governments or European regulators,” ING healthcare analyst Diederik Stadig told CNBC, referring to a Trump policy where the price of a drug in the U.S. is set to the lowest price paid by another comparable country.
Meanwhile, China has emerged as a leader in biotech — the innovation engine of pharma. Global pharmaceutical companies are increasingly looking to the country for innovation and to potentially source their next blockbuster drug.
