2 Pharma CEOs Urge EU to Raise Prices or Risk Losing Innovation Edge

Two of the world’s top pharma executives are sounding the alarm: Europe must act swiftly or face a sharp decline in its role in the global pharmaceutical industry. Novartis CEO Vas Narasimhan and Sanofi CEO Paul Hudson are pressing the EU to rethink its approach to drug pricing as global tariffs and supply chain concerns escalate.

They warn that Europe’s share in global pharmaceutical R&D has dropped to less than 25%, a stark contrast to past decades. The current pricing environment, they argue, is undermining incentives for innovation, pushing companies to prioritize markets like the U.S. and China, where new drugs command higher returns.

With geopolitical uncertainty and rising protectionism, both leaders emphasize that the EU risks becoming a follower in biotech innovation, rather than a global leader. They call for a comprehensive pricing reform that reflects the true value of medical breakthroughs, or Europe may become increasingly dependent on external innovation.