Sanofi, Novartis CEOs lambast EU price control as Trump reportedly weighs drug cost parity with other nations
Title
Sanofi and Novartis CEOs Criticize EU Drug Price Controls as Trump Considers Cost Parity Measures
Keywords
- Sanofi
- Novartis
- EU drug pricing
- Price control
- Pharmaceutical investment
- Trump administration
- Drug cost parity
- Reference pricing
- Innovation in pharma
- Biopharma competitiveness
- Tariffs
Key Facts
- The CEOs of Sanofi (Paul Hudson) and Novartis (Vas Narasimhan) have publicly criticized the European Union's drug price controls and austerity measures, arguing these policies undermine the attractiveness of the EU market for pharmaceutical innovation and investment345.
- In a letter published in the Financial Times, the CEOs called for the EU to allow drug prices to rise to levels comparable to the United States, which currently pays nearly three times as much for drugs as other developed regions345.
- They warned that the EU’s current approach is causing a decline in its biopharmaceutical sector’s competitiveness and prompting companies to shift investments toward the US, especially in light of new tariffs and US policies intended to boost domestic manufacturing345.
- Novartis, along with other major pharma companies like Roche, Eli Lilly, and Johnson & Johnson, have recently pledged significant investments in the US market as a response to tariffs and to align with shifting regulatory priorities35.
- The Trump administration is reportedly considering an international reference pricing program that would tie US drug prices to costs in other developed nations, potentially reducing what Americans pay for prescription medicines35.
- The pharma CEOs contend that artificially low drug prices in the EU stifle innovation and restrict patient access, noting that even two years after approval in the US, 30% of the same drugs remain unavailable in Europe5.
- They argue that Europe’s pharmaceutical export model—producing in the EU and exporting to the high-priced US market—is unsustainable under the current regulatory and economic landscape34.
- Without reforms to reward innovation, the executives caution that Europe risks further decline in biopharmaceutical competitiveness and increased company exodus5.
Sources:
3. https://www.youtube.com/watch?v=YvltKQKeHxw
4. https://pharma.economictimes.indiatimes.com/news/pharma-industry/novartis-and-sanofi-ceos-say-eu-should-raise-drug-prices-in-face-of-tariffs/120548452
5. https://www.pharmaceutical-technology.com/news/pharmaceutical-europe-us/