European pharmaceutical industry: Challenges and opportunities for an innovative future

The European pharmaceutical industry is at a turning point. While it remains as a global leader in R&D investment and exports, it is losing ground to the United States and China.

In 2023, Europe invested €50 billion in R&D, employed 900,000 people, and generated €390 billion in production. Exports reached €680 billion, contributing €200 billion to the EU's trade balance.

However, China has overtaken Europe for the first time in the creation of new active substances (25 to 17). The United States remains the leader with 28 out of 90 new molecules.

What factors are behind this decrease?

1. Fiscal austerity: Cuts in R&D have negatively impacted the sector.
2. Growth of emerging markets: Biomedical R&D is growing rapidly in countries like Brazil, China, India, and Korea, attracting investment and talent.
3. Lack of intellectual property protection: Europe needs to strengthen patent protection to incentivise innovation.

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What measures can be implemented to address this situation?

1. New pharmaceutical legislation: The EU must create a framework that protects intellectual property and promotes innovation.
2. Increase R&D investment: Governments and companies need to invest more in research and development of new drugs.
3. Foster collaboration: Collaboration between companies, universities, and research institutions is key to success.

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The future of the European pharmaceutical industry depends on its ability to adapt to these challenges and capitalise on its strengths. If the right steps are taken, Europe can remain a global leader in pharmaceutical innovation and ensure that patients have access to new and more effective treatments.

Despite the challenges it faces, the European pharmaceutical industry has the potential to remain a global leader. With the right policies and investments, the industry can continue to innovate and develop new treatments that improve the lives of patients around the world.

Sources:

• La industria farmacéutica en Europa pierde posiciones (farmaindustria.es)
• The-pharmaceutical-industry-in-figures-2024.pdf (efpia.eu)
• JRC Publications Repository - The 2023 EU Industrial R&D Investment Scoreboard (europa.eu)