The European Federation of Pharmaceutical Industries and Associations (EFPIA) has issued a ten-point plan ahead of the meeting of heads of state in Belgium next Thursday

Without the pharmaceutical industry, the EU’s trade balance would shift from a surplus of €147 billion to a deficit of €47 billion

The sector generates the largest trade surplus of all European industrial sectors, invests €55 billion a year in R&D and generates €320 billion in exports

farmaindustria.es

Belgium will host a new meeting of the European Council next Thursday, comprising the heads of state or government of the 27 Member States. Among other issues, the meeting will address how to strengthen Europe’s competitiveness in the new geopolitical context. This debate is particularly relevant for innovation- and knowledge-based sectors, such as the pharmaceutical industry, at a time of growing global competition.

On the occasion of this meeting, the European Federation of Pharmaceutical Industries and Associations (EFPIA), of which Farmaindustria is a member, points out in a statement that, without the sector, the EU’s trade balance would shift from a surplus of €147 billion to a deficit of €47 billion.

The pharmaceutical industry is a key driver of industrial R&D growth in the region, with an annual investment of €55 billion in research and development of new medicines, which in turn generates €320 billion in exports. It is the sector that contributes most to the EU’s trade surplus, accounting for 30% more than the combined contribution of all other industrial sectors.

Despite the turbulent times we are currently experiencing globally, the sector is in a unique position to contribute to a “stronger, more resilient and healthier Europe: it creates quality jobs, ensures growth and investment, whilst providing the tools to tackle global health threats and existing health challenges in Europe”.

However, over the last two decades, Europe has lost 25% of its share in biomedical R&D. Whilst EU investment in R&D grew by an average of 4.4% annually between 2010 and 2022, growth in the United States was 5.5% and in China, 20.7%.

Since the publication of the Draghi Report on EU competitiveness in 2024, rapid geopolitical developments have led companies to operate in an even more complex environment. The report recognised the strategic importance of the sector, as well as its uncertain future in a context of fierce competition. However, the vast majority of its recommendations remain unaddressed.

Efpia points out that EU leaders have the power to reverse the trends of recent decades and ensure that Europe remains a prime destination for investment in innovation, skills development and employment within the pharmaceutical sector.

“The value that the pharmaceutical industry brings to the EU’s trade balance is unrivalled and crucial for Europe’s future. But all too often, the sector’s strategic value is overlooked. Now is the time to act if we want to reap the benefits that this sector can bring as a pillar for building Europe’s economic future,” said Efpia’s Director General, Nathalie Moll.

Accordingly, EFPIA proposes ten actions for Europe’s growth, competitiveness, security and prosperity, across two areas: creating an ecosystem that supports a strategic and competitive sector of the European economy, and transforming national market access conditions so that they properly value innovation.

1. Establish a strengthened innovation ecosystem underpinned by world-class industrial property incentives.
2. Modernise the regulatory and clinical trials framework to keep pace with scientific advances and technological developments.
3. Promote a more sustainable pharmaceutical industry by ensuring greater legislative consistency between policies directly regulating medicines and chemical and environmental policies.
4. Increase and simplify the flow of and access to funding for innovation.
5. Ensure that EU trade policy supports key, strategic and competitive sectors.
6. Revive the Strategic Dialogue on Medicines.
7. Increase Member States’ public investment in innovative treatments.
8. Integrate all dimensions of the value of innovative medicines into health technology assessment and pricing and reimbursement systems.
9. Phase out national cost-containment measures and comply with the EU Transparency Directive.
10. Allow companies to set launch prices freely in European markets.