Pharmaceutical Exodus: Tariffs Propel Industry Shift from Europe to US

European pharma companies warned the EU Commission President that potential U.S. tariffs could accelerate the industry’s move to the United States. The EFPIA calls for regulatory reforms to foster innovation and prevent an exodus of pharmaceutical giants like Bayer, Novartis, and Novo Nordisk.

In a stark warning to the European Commission, major European pharmaceutical companies have expressed concerns about the impact of potential U.S. tariffs on their operations. During a meeting on Tuesday, industry giants including Bayer, Novartis, and Novo Nordisk emphasized the threat of a significant industry shift to the U.S. amid fears of increased tariffs.

Despite pharmaceuticals being exempt from recently announced U.S. tariffs, there is apprehension about future tariffs targeting the sector. The EFPIA, representing European pharmaceutical interests, urged swift regulatory changes to stimulate innovation and bolster intellectual property rights to counteract the migration momentum towards the U.S.

The EFPIA reiterated its warnings about losing competitive edge to U.S., China, and emerging markets if legal reforms are not implemented in EU's pharmaceutical sector. This heightened uncertainty from the tariff threat adds further pressure to relocate, given the intertwined nature of U.S.-EU supply chains and substantial trade volumes between the two regions.

(With inputs from agencies.)