Europe Urged to Boost Pharmaceutical Sector Competitiveness

Brussels has become a focal point for discussions regarding Europe’s competitiveness in the pharmaceutical sector. At the recent POLITICO 28 Gala Dinner, Stefan Oelrich, president of Bayer‘s pharmaceuticals division and the European Federation of Pharmaceutical Industries and Associations (EFPIA), emphasized the urgent need for Europe to enhance its global standing. He stated that Europe must “get its act together” to harness its potential in pharmaceuticals and ensure patient access to innovation.

Oelrich expressed concern that Europe is losing its competitive edge in the pharmaceutical industry, noting that “nine out of ten new medicines were discovered in Europe” in the past, a figure that has significantly declined. He highlighted that countries like China and the United States are advancing ahead in areas such as pharmaceutical innovation and clinical trials. According to Oelrich, approximately one third of medicines approved by the U.S. Food and Drug Administration (FDA) do not reach the European market, indicating a troubling trend for the region.

Investment trends also reflect this shift. Under pressure from potential U.S. tariffs, many companies are increasingly diverting their investments away from Europe. Oelrich pointed out that a lack of substantial incentives for firms to invest in the continent is a significant barrier to innovation. He urged for a more conducive business environment that prioritizes innovation, stating, “We have some of the best universities in the world that publish some of the coolest science in the world.”

Investment Opportunities in Europe

In contrast to the challenges highlighted by Oelrich, Per Franzén, CEO and managing partner at EQT, noted a surge of interest in investing in Europe. He described it as “an unprecedented interest” and referred to the current climate as a “real window of opportunity.” Franzén emphasized the importance of seizing this moment, suggesting that a more business-friendly agenda is crucial for leveraging these investment opportunities.

The dialogue at the gala dinner underscored the pressing need for Europe to adapt swiftly to the rapidly evolving landscape, especially with the influence of artificial intelligence driving change across industries. Oelrich warned that “time is of the essence,” suggesting that Europe must act decisively to foster an environment that encourages pharmaceutical innovation.

Oelrich concluded with a call to action, urging stakeholders to focus on practical solutions rather than complicating matters with new regulations. He stated, “Instead of trying to complicate our lives and come up with a new bureaucratic idea, we should come up with ways of how we unleash our forces.” With strong leadership and a commitment to reform, Europe has the potential to reclaim its status as a leader in the global pharmaceutical market.