A recent report from the European Federation of Pharmaceutical Industries and Associations (EFPIA) serves as a critical wake-up call for policymakers regarding the competitiveness of Europe’s pharmaceutical industry. Michał Byliniak, General Director of INFARMA, emphasized the urgency of the findings in a statement to Euractiv, noting that Europe is lagging behind the US and China in this vital sector.
The EFPIA study provides a comprehensive analysis of the pharmaceutical industry’s economic impact across European member states, revealing that in 2022, the sector contributed approximately €311 billion to Gross Value Added (GVA) in EU-27 countries and €448 billion across Europe. This represents 2.0% and 2.6% of total GVA in these regions, respectively. The industry also supported 2.3 million jobs in the EU-27, with 633,200 direct positions within pharmaceutical companies.
Despite these impressive figures, Byliniak warns that Europe is losing ground in research and development (R&D) investments. “The data clearly indicate that despite the importance of the pharmaceutical industry and increasing R&D spending, Europe is losing this race for patients and the economy,” he stated.
Key insights from the report show that while R&D spending in Europe has grown at an average rate of 4.4% since 2010, it pales in comparison to increases seen in other regions. For instance, R&D expenditures in the United States rose by 5.5%, while China saw a remarkable increase of 20.7%. This disparity has contributed to a decline in new molecular entities (NMEs) discovered in Europe, crucial for advancing healthcare innovations.
Nathalie Moll, Director General of EFPIA, highlighted the economic significance of the pharmaceutical sector for health and economic security in Europe. “Despite slow growth in R&D spending, the scale and pace of declining global shares of Europe in R&D investments indicate that the time to reverse this trend is limited,” Moll cautioned.
The report also sheds light on Poland’s pharmaceutical industry, which added approximately €5 billion to its GVA in 2022 and provided 58,500 jobs. Byliniak noted that Poland’s presidency presents an opportunity to shape future priorities for enhancing Europe’s competitiveness. “This is a chance to significantly influence directions and priorities for improving Europe’s competitiveness,” he remarked.
To address these challenges and enhance competitiveness, Moll advocates for coordinated actions across member states and the urgent implementation of a coherent life sciences strategy for Europe. “Enhancing Europe’s competitiveness to stimulate growth requires joint efforts,” she asserted.
As policymakers consider these findings, it is clear that immediate action is necessary to ensure that Europe remains a leader in pharmaceutical innovation and economic growth.
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