There’s an increasing realization among business and political leaders how vulnerable some of Europe’s critical supply chains have become. The challenge is translating this into action.
When we talk to governments and figures in the industry, everyone gets it. No one will dispute it. The challenge is how we translate that into action. Right now, I’m encouraged, but not relieved.
We estimate that roughly 70% of the drugs used across Europe are generic and biosimilar, and they cost between 10% and 20% of the total drug bill. Without generic companies there is no healthcare in Europe.
Very few of those drugs, certainly the non-biologic complex drugs, are made in Europe. Almost all of the key starting materials are imported either from China or India. Almost none are manufactured in Europe because the payers have chased margin pricing down to the bottom.
If 70% of the drugs are costing 20% of the money, you can see where the market is heading. While people have pursued lower costs, they’ve forgotten the value of sustainability and security.
