Pharmaceutical companies are contemplating redirecting up to €100 billion from planned investments in Europe to the United States and other regions, signaling a potential industry “exodus.” Concerns have been raised by the heads of 30 pharmaceutical firms, including major players like Pfizer, Eli Lilly, and MSD, about the risk of decreased manufacturing capacity in the EU as companies shift focus towards the US and other growing markets.

In a letter to European Commission president Ursula von der Leyen, pharma executives highlighted a looming crisis exacerbated by the US-EU trade war and proposed regulations impacting drug sales and wastewater treatment costs. They urged the EU to reconsider policies that could hinder innovation and investment in the pharmaceutical sector. The executives emphasized the importance of streamlining drug approval processes to foster growth within the European market.

The pharmaceutical industry holds significant economic importance for Ireland, with a substantial portion of exports and corporate tax revenues tied to this sector. The looming threat of tariffs on pharmaceutical exports to the US further complicates the investment landscape, potentially putting billions of euros earmarked for manufacturing and research projects at risk.

Key industry players, employing thousands in Ireland, underscored the need for decisive policy changes to retain pharmaceutical development and production within the EU. Without prompt action, a substantial portion of investments could be diverted to other regions, impacting economic growth and employment opportunities in Europe. The urgency of the situation is highlighted by the imminent risk to billions of euros in investment plans, emphasizing the need for swift and strategic decisions to safeguard the pharmaceutical industry’s future in Europe.