FRANKFURT/LONDON: European pharma companies warned the European Commission president in a meeting on Tuesday that US President Donald Trump's tariffs would expedite the industry's shift away from Europe and toward the United States, two industry sources told Reuters. Pharma trade lobby EFPIA called on EU President Ursula von der Leyen to push for "rapid and radical action" to mitigate the "risk of exodus" to the United States, the sources said, speaking on condition of anonymity because they were not authorised to share details on the meeting. The meeting was attended by the CEOs of some EU-headquartered pharma companies as well as EFPIA and biotech lobby Europabio. In order to stop an exodus of investment and research and development from Europe, executives said the EU needs to make changes to the regulatory framework for the industry to make it more conducive to innovation and strengthen Europe's intellectual property provisions, the sources said. The EFPIA declined to comment. The European industry's demands were not new as EFPIA has repeatedly warned that the pharma sector could lose out to increased competition if the EU does not amend a proposed revamp of laws governing the sector. The United States is the biggest pharma market by sales for all big pharma companies, both US and European headquartered ones. Pharmaceuticals were exempt from the duties Trump announced last week, but he said they will face separate tariffs. While announcing the raft of tariffs, Trump predicted that pharma companies will come "roaring back" to the US, and warning if they don't, "they got a big tax to pay". EU medicine and pharmaceutical product exports to the United States totalled about 90 billion euros ($97.05 billion) in 2023, according to latest Eurostat data. In 2021, North America accounted for 49.1% of world pharmaceutical sales compared with 23.4% for Europe, according to the latest statistics available from EFPIA. A second child with measles has died in Texas, in an outbreak of the childhood disease that has resulted in nearly 500 cases in Texas and has spread across 22 states.
The European Commission on Monday proposed counter-tariffs of 25% on a range of US goods, including soybeans, nuts and motorcycles.
— Reuters
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