Ultimatum of pharmaceuticals in the Commission – THE NEWS
In force is the ultimatum sent to the Commission by the largest European pharmaceutical companies, as well as several others with significant EU units.
Their main demand is to provide incentives that will limit the cost of production (by substantially shifting it to the budgets of the 27 Member States) and prevent them from transporting their production outside Europe. Most notably in the United States, where the Donald Trump government is committed to significantly reduce the tax burden on businesses in the US, while imposing high duties on products that will continue to be imported – with what it entails for consumers.
Indeed, as the French financial newspaper « Les Echos » revealed last week, Ursula von der Laene – a meeting with top industry representatives – received a letter bearing the signatures of more than 30 pharmaceuticals, including Pfizer, Eli Lili. In this, shippers underline the benefits of the US market as they claim their products are sold there at average doubles compared to the European.
Then, and after insisting that so far the industry has completely absorbed the increase in the costs of accompanying innovative and original formulations « , they make an indirect threat: » We hope that in the coming weeks we will work together to ensure that the specific ones will be able to ensure that the specific proposals will be made. Something that, in simple terms, refers to a wave of increases in medicinal products for the approximately 450 million European citizens who have every reason to fear.
All of the above, as is obvious, unfolding in the background of the economic-commercial war that the US president has declared to the detriment of all, even the traditional narrower allies of his country, such as Europe. A development that allows the deck to be reunited on many levels, as the key « players » of markets realize that it is a critical juncture, in which they can either lose many of their acquisitions or broaden their profits and influence.
Plans for large US investment
Especially with regard to pharmaceutical companies, it should be noted that they have not been limited to threats, but have also done actions. For the truth, Swiss Roche (second in the world rankings in 2024 based on its sales value) made it known its decision to invest $ 50 billion in the US within the next five years, seeking to exploit the tax privileges that Trump has promised.
Similar announcements have recently been made by US Johnson & Johnson (first in sales worldwide last year) and Elli Lilly, with investments of $ 27 billion and $ 55 billion respectively, as well as the Swiss Novartis with $ 23 billion – with the latter saying it is « 100% in the US ».
This means that only four of them intend to invest on the opposite side of the Atlantic for a total of $ 155 billion – to the great joy of Trump and to EU regret. « Trump’s pursuit with his duties is to produce many medicinal products in the US again. Based on the announcements of the companies in the industry, it appears that its tactic is likely to be successful, « Handelsblatt said on Tuesday.
As Bayer’s leader Bill Anderson, in addition to Trump’s duties, said in the German newspaper, the pharmaceutical companies are also affected by the low prices of drugs in Europe. « America’s consumers and businesses are funding progress and innovation in the drug industry, and this is something the whole world benefits, » he notes, noting that Trump has a « strong argument ».
The intentions of the industry had also been clear from the early hours after the duties of the duties launched by Trump. « CEOs of the pharmaceutical industries are calling on President Ursula von der Laien in view of the threat of mass exit to the US (…) If Europe fails to change its policy quickly and radically, then research, growth and production are increasingly likely to guide the US. » Efpia.
