The European Commission has said it will not change its plan to reform the rules for medicines in the EU, even though major pharmaceutical companies are pushing back. The companies worry the new rules could hurt their profits and make Europe less competitive in the global market.
Drugmakers like Sanofi and Novartis have asked for stronger protection for their patents and fewer controls on drug prices. They argue that prices are higher in the U.S., which makes that market more attractive for investment and innovation. In a recent letter, these companies urged the EU to offer more support to keep the industry strong.
Despite this pressure, the Commission says it is sticking to the current proposal, which has been in the works since May 2023. The plan is now in the hands of the European Parliament and the EU Council, and can only be changed if the Commission officially withdraws it and submits a new one. But officials say they are still hopeful that a good outcome can be reached through ongoing discussions.
One reason for the industry’s concern is a possible trade dispute with the United States. There are fears that the U.S. might soon raise tariffs on European medicines. Also, the U.S. government is considering linking American drug prices to those in other countries. If European prices stay low, U.S. prices could be forced down too.
In response to this uncertainty, big companies like Novartis and Roche have announced huge investments in the U.S.—$23 billion and $50 billion, respectively—to protect their business.
Still, the EU says it values the pharma industry and wants to support it, not just economically, but also to improve healthcare for its citizens. The Commission promises to keep talking with industry leaders to find a balanced solution.
