Rising uncertainty driven by US tariffs and proposed “most-favoured nation” pricing is prompting pharmaceutical companies to delay investment and product launches in Europe.
US tariffs and pricing pressure are causing uncertainty for the pharma sector, which will slow investment decisions and delay patient access to new medicines in Europe, according to a new industry survey conducted for the European Confederation of Pharmaceutical Entrepreneurs (EUCOPE).
The analysis, carried out by Copenhagen Economics roughly estimates that its members added €98 billion to the EU’s GDP in 2024 and supported around 678,000 jobs when direct (€59B, 225k jobs), indirect (€24B, 276k jobs) and induced effects (€16B, 177k jobs) were taken into account.
The study underscores how the sector remains one of Europe’s most productive, with high productivity driven by substantial investment in research and specialized skills. However, 57% of respondents expect R&D expenditure to decline, and none expected an increase in these uncertain times.
The two main drags on investment are the US imposition of 15% tariffs on non-generic medicines and what the Trump administration refers to as “most-favoured nation” (MFN) pricing. The survey responses suggest these policies may prompt companies to reconsider investment and launch strategies, potentially shifting activities away from…
