Pharmaceutical companies in Europe are requesting the EU to adopt drug pricing strategies comparable to the US, as reported by the Financial Times.
Amid the threat of tariffs, pharmaceutical investments in the US are said to have surged since President Donald Trump's return to power.
In a letter published in the Financial Times, Novartis CEO Vas Narasimhan and Sanofi CEO Paul Hudson have proposed that the European Commission set a target to spend on medicines and vaccines.
According to estimates from the US Government, the country spends almost triple the amount on both generic and branded drugs compared to other similar nations.
The chief executives said that the biopharma sector in the EU is being held back by artificially low drug prices, which they say discourage innovation.
They point to data showing that two years after approval in the US, 30% of those same medicines are still unavailable in Europe.
The executives emphasise that without urgent action, Europe may face a decline and an acceleration in the departure of companies.
The Trump administration has aimed to address the high prices of drugs in the country.
Roche announced a $50bn investment in the US, and Novartis announced $23bn on manufacturing and research and development (R&D).
Johnson & Johnson and Eli Lilly have announced significant investments in the country.
Sanofi, however, has not made any huge investment announcements in the US, following French President Emmanuel Macron's call for European firms to pause investments in the US.
The EC is reportedly in “ongoing” communication with the pharmaceutical industry, with Commission President Ursula von der Leyen meeting with chief executives to discuss the tariffs.
Recently, pharmaceutical companies called for modifications to European regulatory frameworks in response to impending tariffs implemented by Trump, which pose a risk to billions of planned pharma investments in Europe.
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