The geopolitical context presents Spain with a great opportunity to attract investment in the biopharmaceutical sector.
A new report by Analistas Financieros Internacionales (AFi) highlights the sector’s potential to become a global hub for innovation and drug production.
Farmaindustria has presented seven measures to the authorities to boost biopharmaceutical innovation in Spain and increase competitiveness.
Farmaindustria.es
The pharmaceutical industry is a strategic sector that combines economic, social, environmental and health returns for the societies in which it operates. This value is now detailed in the report The Great Opportunity: Spain as a Global Hub for Innovation and Drug Production, prepared by Analistas Financieros Internacionales (AFI).
The report highlights the key figures that make the biopharmaceutical industry a spearhead in Spain, both in terms of innovation and production capacity and its social impact. In addition, the report emphasises that, in the current geopolitical context, the pharmaceutical industry is positioned as a sector to be strengthened in the open strategic autonomy in Europe.
Farmaindustria.es
The pharmaceutical industry has more than 180 drug production plants that generate more than €27.2 billion in added value, equivalent to 1.9% of the national GDP. In terms of R&D, companies’ annual investment exceeds €1.5 billion, 45% of which is carried out in collaboration with hospitals, universities and other research centres through public-private partnerships. Thus, in recent years, Spain has positioned itself as one of the world leaders in clinical innovation.
Farmaindustria.es
These synergies contribute to an ecosystem that drives knowledge, generates quality employment, with more than 55,500 direct jobs, and exports more than €17 billion per year.
The impact of the sector is supported in Spain by one of the most efficient healthcare systems in the world, consisting of a network of internationally recognised hospitals, laboratories and research centres. In addition, the report highlights how Spain has a network of cutting-edge physical and digital infrastructure on a global scale, as well as one of the most extensive high-speed rail networks in the world and the highest fibre optic penetration in the European Union.
However, over the last 20 years, Europe has lost its leadership in the launch of new drugs, in the 2000s to the United States and in 2024 also to China. In the last two decades, Europe has lost 25% of its investment in R&D. This is in addition to strong pressure from the US government to attract investment in the sector, which puts the activity of companies in Europe at risk.
In a context of global uncertainty, the pharmaceutical industry is emerging as a strategic sector for strengthening Europe’s health and production autonomy. However, it is essential to have administrations that send clear signals of their commitment to innovation and promote measures that strengthen the innovation ecosystem in the country and the region.
Seven measures to boost biopharmaceutical innovation in Spain
In this context, Farmaindustria has put forward and submitted a series of proposals to the authorities to enable Spain to become a global centre for biopharmaceutical production and innovation. At a time when Spain is undergoing a thorough review of the regulatory framework for the pharmaceutical sector, the industry believes that there is a great opportunity for Spain to become an even more attractive country for innovation.
The seven proposals set out in From Potential to Action: Measures to Accelerate Biopharmaceutical Investment in Spain in the Current Geopolitical Context include: establishing a predictable regulatory framework that values innovation and facilitates patient access to new medicines; strengthening the innovation ecosystem; adapting new environmental regulations to innovation and competitiveness objectives; reviewing tax pressures; improving Profarma reductions and not increasing the mandatory contributions of the 6th additional provision; and increasing deductions for R&D investments and incentives for the production of strategic medicines or advanced therapies.
Farmaindustria is communicating these proposals to government bodies and industry stakeholders in order to take advantage of the historic opportunity currently offered by the regulations under preparation, from the future Law on Medicines and Health Products to the Royal Decrees on Health Technology Assessment and Pricing and Financing. This, together with the renewal of European pharmaceutical legislation and the drafting of the future European Biotechnology Law, places us at a key moment in defining the future of Europe. There is an urgent need to commit to biopharmaceutical innovation, accelerate the availability of treatments for European patients and promote an innovative ecosystem that attracts investment in R&D and production facilities in Europe and Spain. The medicines we will have in the future will depend on today’s investment in biomedical R&D and clinical trials with new medicines.
