Pharmaceutical Giants Call for EU-Wide Drug Price Reform

In a compelling appeal to the European Union, Novartis CEO Vas Narasimhan and Sanofi CEO Paul Hudson have highlighted the urgent need for higher drug prices to safeguard the future of the region's pharmaceutical sector. Their joint letter to the Financial Times underscores a growing concern over Europe's diminishing role in the global pharmaceutical landscape.

Proposed Measures to Revitalize Europe's Pharmaceutical Industry

The CEOs outlined three critical strategies to address the disparity between the US and European pharmaceutical markets. These include establishing an EU-wide list price for medicines, setting a bloc-wide spending target for innovative treatments, and eliminating national policies that hinder market growth. "This creates a clear disincentive for innovators," they argued, pointing to the risk of Europe falling behind in the global arena.

A Warning Against Complacency

Without immediate action, Narasimhan and Hudson caution that Europe risks losing its key players in the pharmaceutical industry, emphasizing the need for a unified approach to pricing and innovation to remain competitive on the world stage.