Europe’s Pharma Chiefs Warn Bloc is Losing Innovation Race

The chairs of nine leading European pharmaceutical companies have jointly called for action to strengthen Europe’s pharmaceutical sector in an open letter to European political leaders, as competing markets – particularly the US and China – ramp up investment and clinical trial activity.

Their intervention comes as the global centre of gravity for pharmaceutical research and development shifts away from Europe. 

The continent accounted for 43% of global pharmaceutical R&D in 1990, but that share has now fallen to 31% and is continuing to drop, according to figures cited by the companies.

Clinical research is following a similar trajectory. The chairs say Europe’s share of commercial clinical trials has halved over the past decade to 9%, reducing opportunities for European patients to participate in trials while also limiting the investment and research activity that clinical studies bring to health systems.

For patients, the investment gap can also translate into slower access to innovation. The letter cites European Federation of Pharmaceutical Industries and Associations (EFPIA) data showing that around 40% of newly approved therapies never reach European patients, while those that do can take nearly 600 days to become available.

The full list of signatories is:

• Michel Demaré, Chair of the Board, AstraZeneca
• Hubertus von Baumbach, Chairman of the Shareholders' Committee, Boehringer Ingelheim
• Maria Paola Chiesi, Chair of the Board, Chiesi Group
• Marc de Garidel, Chairman of the Board, Ipsen
• Sir Jonathan Symonds CBE, Chair of the Board, GSK
• Lars Rebien Sørensen, Chair of the Board of Directors, Novo 
• Giovanni Caforio, Board Chair, Novartis
• Dr Severin Schwan, Chairman of the Board, Roche
• Frédéric Oudéa, Chairman of the Board, Sanofi

US and China steam ahead

The scale of investment taking place outside Europe is central to the pharma leaders’ concerns.

More than US$600bn in pharmaceutical investment has been announced across the US and China over the past two years alone, according to the open letter.

China has also overtaken Europe in several measures of pharmaceutical activity, including clinical trials, pharmaceutical patents and the development of new medicines, the companies say.

The trend reflects a broader shift in the global life sciences landscape. EFPIA’s latest competitiveness analysis, which compares Europe with the US, China, the UK, Switzerland and Japan across 20 indicators, similarly identifies gaps in research and innovation, regulation, the commercial environment and industrial output.

The letter also highlights the role of national governments in creating the conditions for pharmaceutical innovation, from healthcare spending and medicine assessments to funding decisions.

That is a point echoed by Sjoerd Hubben, Head of Global Corporate Affairs at AstraZeneca, who argues that governments need to take a longer-term view of the value generated by investment in healthcare.

“National governments hold many of the most important levers, from health budgets to how innovative medicines are assessed and funded,” he writes on LinkedIn. 

“The EU has a vital supporting role too, including the fiscal flexibility needed for long-term health investments that deliver returns over time.

“Investing in innovation is not simply a healthcare cost. It is an investment in better population health, economic growth, high-value jobs, productivity and Europe's health sovereignty.”

What do the European chairs want?

The pharmaceutical leaders’ recommendations centre on creating a more attractive environment for investment, clinical research and the adoption of innovative medicines.

At EU level, the chairs call for faster clinical trials, stronger intellectual-property protection and “sensible digital policies”, alongside greater fiscal flexibility for member states investing in healthcare and innovative medicines.

They argue that these measures could help Europe compete more effectively with the US and China for pharmaceutical investment.

The letter also places significant responsibility on national governments. The nine chairs point to decisions around healthcare budgets, the speed at which new medicines are assessed and funded, and the modernisation of healthcare systems as critical factors in determining Europe’s attractiveness as a life sciences market.

A key part of the argument is a shift in how governments assess the value of medicines. Rather than viewing innovative treatments primarily as a healthcare cost, the leaders argue that value frameworks should account for their wider contribution to patients, health systems and the economy.

Clinical research is one area where the leaders see a particularly significant opportunity. The letter cites an estimate that closing Europe’s clinical-trial gap with the US and China could unlock €53bn (US$60bn) in economic value and 82,000 jobs.

The letter closes by highlighting the leaders’ continued confidence in Europe’s pharmaceutical sector and its ability to lead the way in global innovation. It reads: “If we choose to invest in health and medicines as strategic assets, Europe will not merely catch up – it can set the pace of global innovation once again and enable Europeans to live longer, healthier lives.” 

Letter signatories

AstraZeneca — Global biopharmaceutical company developing prescription medicines across oncology, rare diseases, respiratory, cardiovascular, renal and metabolic health.

Boehringer Ingelheim — Family-owned pharmaceutical company focused on human and animal health, with research spanning respiratory, cardiovascular, immunology and metabolic diseases.

Chiesi Group — International pharmaceutical and healthcare company specialising in respiratory, rare diseases and neonatology, with a strong research and innovation focus.

Ipsen — Global biopharmaceutical company developing medicines across oncology, rare diseases and neuroscience, with operations spanning research, development and commercialisation.

GSK — Global biopharma company focused on vaccines and specialty medicines, with expertise spanning infectious diseases, respiratory health and immunology.

Novo — Recently rebranded from Novo Nordisk, Novo is a global healthcare company specialising in diabetes, obesity and rare diseases, with a portfolio spanning medicines, devices and related technologies.

Novartis — Innovative medicines company focused on cardiovascular, immunology, neuroscience and oncology, using science and digital technologies to advance healthcare.

Roche — Global healthcare company combining pharmaceuticals and diagnostics, with expertise spanning oncology, immunology, neuroscience, ophthalmology and infectious diseases.

Sanofi — Global healthcare company developing medicines and vaccines, with major focus areas including immunology, rare diseases, vaccines and consumer health.