In the wake of the recent competitiveness report by former ECB President Mario Draghi, Roche has emphasized the critical need for reforms in Europe’s pharmaceutical sector to enhance innovation and maintain global competitiveness. The report highlights the pharmaceutical industry as a significant contributor to the EU economy, directly employing approximately 937,000 individuals.
In early 2023, the European Commission proposed changes to existing pharmaceutical regulations aimed at fostering a more conducive environment for innovation. However, with ongoing negotiations and concerns from industry leaders, there is a growing consensus that the current proposals may undermine Europe’s competitive edge in the global market. “It would be a shame for this once-in-a-generation legislation to move ahead without addressing broader objectives,” stated Padraic Ward, Roche’s Head of Pharma International.
Ward expressed concern over proposed revisions to the incentives framework within the legislation, urging that recommendations from the Draghi report be considered before finalizing any changes. “We need a life sciences framework that supports European innovation—not just for patients but also for economies across the region,” he added.
The report underscores a troubling trend: Europe is on track to see its share of global research and development (R&D) investment decline from 37% in 2010 to just 25% by 2030. Additionally, Europe is losing ground in clinical trials, with 60,000 fewer trial sites available despite a global increase in research projects.
Ward pointed out that the fragmentation of R&D investment in Europe is a significant barrier to competitiveness. “We must prioritize solving this issue to prevent Europe from falling further behind regions like China and the US,” he stated.
To reclaim its status as an innovation leader, Ward advocates for the effective implementation of existing legislation such as the EU Health Data Space and the AI Act. He also supports rapid integration of health technology assessment (HTA) regulations to ensure that EU bodies are equipped for Joint Clinical Assessments.
Looking toward the future, the Draghi report predicts that artificial intelligence (AI) will play a transformative role in healthcare. Ward agrees, noting that Roche is actively exploring AI applications across its operations—from drug discovery to commercialization. “Our partnership with the Alan Turing Institute focuses on leveraging advanced analytics to enhance personalized healthcare,” he explained.
Despite challenges highlighted in the report regarding public R&D investments in the EU, Ward reaffirmed Roche’s commitment to innovation within Europe. “Europe is our home,” he said, emphasizing that over half of Roche’s R&D sites are located in Europe. However, he cautioned that continued perceptions of healthcare spending as a sunk cost rather than an investment could hinder significant R&D commitments from life sciences companies.
Ward concluded by highlighting Europe’s unique strengths—its commitment to equity and solidarity in health systems and its world-class scientific talent—as essential components for fostering a brighter future for patients and health systems across the continent. “We are ready to collaborate with policymakers to ensure that Europe remains a leader in health innovation,” he asserted.
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