Novartis and Sanofi call for higher drug prices in Europe
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Novartis and Sanofi call for higher drug prices in Europe
Swiss and French pharmaceutical companies Novartis and Sanofi are pushing for higher medicine prices in Europe.
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In an open letter published on Wednesday in the UK’s Financial Times, they argued that the European Union (EU) should adjust its prices to better align with those in the United States.
Higher prices stimulate innovation and encourage investment in the European pharmaceutical industry, said Novartis CEO Vas Narasimhan and Sanofi CEO Paul Hudson. They warned that the competitiveness of European pharmaceutical companies is declining, and uncertainties around customs duties are discouraging investment in the EU.
Declining investment in EU pharma
Low drug prices in the EU are stifling growth and making innovation less appealing, continued Narasimhan and Hudson. Amid threats of customs duties and increasing competition from China, the two executives are raising the alarm, predicting a decline in investment in Europe.
The two CEOs urged the European Commission to set a spending target for medicines and vaccines, and to establish reference prices similar to the net prices in the US, adjusted with rebates where necessary. According to the US government, drug prices are nearly three times higher in the US than in comparable countries.
Narasimhan and Hudson also criticised European bureaucracy and called for an end to national measures that cap market volume and to price cuts for new indications.
In contrast, the US is seeing a surge in pharmaceutical industry investment. Novartis has announced plans to invest $23 billion (CHF19 billion) in production and research, while Roche aims to invest $50 billion over the next five years.
Translated from French with DeepL/sp
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