Pharmaceutical companies across the European Union have expressed concern about a potential shift in investment towards the United States following renewed indications from former U.S. President Donald Trump that import tariffs on pharmaceuticals could be introduced soon.
European and Indian pharmaceutical stocks declined on Wednesday in response to Trump’s remarks, made during an event hosted by the National Republican Congressional Committee. He stated that a “major tariff” on imported drugs would be announced “very shortly,” although no timeline or specific rate has been provided.
The Stoxx 600 Health Care index, which includes a range of European pharmaceutical firms, fell 5.9% on the day. Major firms such as AstraZeneca, Sanofi, GSK, Novartis, and Roche all saw share prices fall between 5% and 7%. In India, where companies like Teva play a major role in global pharmaceutical production, similar market impacts were reported.
The tariff discussion follows the imposition of new levies on imports from 57 countries and territories, including 20% on EU member states, 104% on Chinese goods, and 27% on Indian exports. These measures come on top of a 10% tariff on imports from all countries that took effect earlier in the week. Pharmaceuticals had previously been exempt.
At a meeting in Brussels on Tuesday, hours before Trump’s new comments, representatives from the European Federation of Pharmaceutical Industries and Associations (EFPIA) met with European Commission President Ursula von der Leyen. The EFPIA warned that without swift policy measures, the EU risks losing significant pharmaceutical investment to the U.S.
The EFPIA, whose members include major global drugmakers such as Bayer, Novartis, Novo Nordisk, Pfizer, GSK, Merck, and others, cited survey results indicating that approximately €16.5 billion in planned investment over the next three months could be redirected. This represents about 10% of the €164.8 billion that the industry has earmarked for EU-based research, development, and manufacturing through 2029.
The organization pointed to a combination of factors influencing investment decisions, including access to capital, intellectual property protections, regulatory efficiency, and financial incentives for innovation—areas where the U.S. is perceived to hold a competitive edge. The addition of potential U.S. import tariffs, the group said, could further shift investment priorities.
Ireland, a major pharmaceutical manufacturing hub exporting €44 billion in products to the U.S. in 2024, is among the countries closely watching developments. Many of these exports are produced by U.S.-based companies operating within the EU.
The EFPIA has proposed a five-point plan to the European Commission aimed at strengthening the EU’s position. Recommendations include improved incentives for intellectual property retention in Europe and the establishment of global frameworks to support pharmaceutical innovation and R&D within the region.
As of Wednesday, the European Commission had not issued an official response to the EFPIA’s proposals or Trump’s latest statements.
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