AstraZeneca CEO Warns Europe is Falling Behind in Pharma

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Pascal Soriot, chief executive of AstraZeneca, recently sounded an alarm about Europe’s diminishing position in global pharmaceutical research, development, and manufacturing. Speaking at a healthcare summit in Paris, Soriot emphasized that Europe’s health sovereignty is weakening under current investment and regulatory patterns. He stressed that unless Europe enhances its focus on innovative medicines and revamps its healthcare spending policies, it risks becoming increasingly reliant on foreign powers for medical supplies and technologies.

Soriot’s remarks come at a critical time, with Europe facing heightened competition from the United States and China, both of which have accelerated their pharmaceutical production capabilities. The AstraZeneca CEO pointed to the ongoing reduction of local manufacturing capacity and innovation hubs, warning that the continent could lose its strategic autonomy in healthcare if immediate actions are not taken.

Comparative analysis: Europe’s investment vs. global counterparts

Comparative data reveal stark differences between Europe’s pharmaceutical investment levels and those of its global peers. According to a recent European Federation of Pharmaceutical Industries and Associations report, Europe now spends approximately 30 percent less on innovative medicines as a share of GDP compared to the United States. While the US pharmaceutical sector benefits from flexible pricing and higher returns on investment, European policies often enforce strict price controls that limit profitability and disincentivize research and development activities.

The disparity is further illustrated by major public and private sector investments in the United States. The Inflation Reduction Act and other initiatives have steered billions of dollars toward biopharmaceutical innovation, creating an attractive environment for startups and multinational companies. In contrast, European companies face hurdles in securing competitive returns, pushing them to shift research centers and manufacturing plants outside the continent.

Industry response: Calls for policy reform

In response to these challenges, Soriot, along with other top executives from European pharmaceutical companies, recently sent a joint letter to the European Commission. The letter urged EU leadership to rethink the pharmaceutical pricing framework and bolster investment incentives. One notable proposal included the introduction of a Europe-wide minimum price floor for innovative medicines, aimed at bridging the gap between US net prices and EU list prices.

Industry leaders argue that the current pricing system, though intended to ensure affordability, unintentionally hampers Europe’s competitiveness. By allowing drug prices to erode year after year, the system undermines the ability of companies to reinvest in research and maintain a strong manufacturing base within Europe. This sentiment is echoed by multiple CEOs, who fear that without reform, Europe risks not only losing investments but also its critical capacity to independently respond to future health emergencies.

Economic implications: The pharmaceutical industry’s role in Europe

The pharmaceutical sector remains a vital pillar of the European economy, contributing more than €130 billion annually to the EU’s GDP and employing more than 800,000 people across research, manufacturing, and distribution roles. The loss of pharmaceutical investment would have a cascading effect on job creation, scientific advancement, and healthcare resilience.

Moreover, supply chain disruptions during the COVID-19 pandemic highlighted the dangers of overreliance on external sources for critical medicines and medical equipment. Leaders like Soriot argue that strengthening Europe’s pharmaceutical industry is not merely an economic concern, but a public health imperative. Maintaining a robust domestic pharmaceutical sector ensures that Europe can quickly develop, produce, and distribute vaccines and therapeutics in the face of future pandemics or geopolitical tensions.

The message from Pascal Soriot and his industry peers is clear: Europe must act decisively to protect its health sovereignty. Without comprehensive reforms to investment policies and pharmaceutical pricing structures, the continent risks falling behind more dynamic and aggressive competitors. Strategic investment in innovation, manufacturing, and supply chain resilience must be seen as essential to securing Europe’s future in a rapidly shifting global healthcare landscape.

Sources:

• End Points
• First Word Pharma