European Federation of Pharmaceutical Industry Associations

iStock, artJazz Playing both sides of trade war, pharma companies are asking for certain compensations for scientific innovation and a smoother regulatory framework. With U.S. President Donald Trump doubling down on plans to issue pharma-specific tariffs, the industry is now demanding that the European Union implement certain measures to help them maintain their presence in the region, according to media reports on Tuesday. Some 30 pharma companies, including European companies like AstraZeneca and American companies like Pfizer, wrote to European Commission President Ursula von der Leyen, saying that the industry suffers certain cost disadvantages in Europe compared to in the U.S., according to reporting from Reuters , which cited French publication Les Echos . Among the industry’s demands of von der Leyen are certain compensations to recoup the cost of scientific innovation, and a simpler regulatory framework for their drugs, according to Reuters . The companies also bristled at an upcoming fee associated with wastewater treatment. “We hope to work together in the coming weeks to ensure that these proposals become reality to the benefit of Europe’s patients and economic development,” the companies wrote in the letter, Reuters reported. Drugs are sold at a higher price on average in the U.S., something that American politicians have long criticized. During the Biden administration, lawmakers used this disparity to blast pharma companies and ask them to lower their prices. Trump has also slammed the difference in drug pricing, signing the so-called Most Favored Nation executive order in 2020 to attempt to bring the prices Medicare pays for drugs down to the same level as other countries. That executive order was never enforced due to legal action from pharmaceutical companies and was eventually rescinded by the Biden administration. The industry’s EU demands come as Trump’s sector-specific tariffs inch closer to being realized. Last week, Trump announced that “major” tariffs on pharma are coming “very shortly.” Over the weekend, Commerce Secretary Howard Lutnick confirmed that the tariffs are on and will likely hit “in the next month or two.” The Commerce Department earlier this week also opened a Section 232 probe on pharma imports into the U.S., which could further empower Trump to impose tariffs on the industry. In the face of these tariffs, pharma companies last week warned the EU that it could face an “exodus” of drugmakers to the U.S. According to European Federation of Pharmaceutical Industries and Associations, the EU could lose as much as 85% of capital investments from the industry and up to 50% of R&D expenditure. From 2025 to 2029, this could mean a potential of €164.8 billion in investments lost. “The US now leads Europe on every investor metric from availability of capital, intellectual property, speed of approval to rewards for innovation,” the Federation warned, noting that in the current uncertain market environment, pharma has “little incentive” to invest in the EU and “significant drivers to relocate” to the U.S.

Welcome back to Endpoints Weekly! This week’s recap kicks off with Andrew Dunn’s examination of the biotech playbook for surviving market turmoil. As former Alnylam CEO John Maraganore put it, recent events have “put biotech CEOs in a very difficult set of shoes compared to what we’ve had to deal with in the past.” See below for more details on how companies might handle the uncertainty. Meanwhile, our reporters tracked news on potential pharma-specific tariffs, which President Donald Trump said would be arriving “very shortly.” And a congressional commission is pushing for a big investment in the biotechnology sector to keep up with Chinese competition. If you’ve got a bit of downtime this weekend, grab a cup of tea and peruse our handful of Q&As out this week, including conversations with GLP-1 co-discoverer Jens Juul Holst, gene editing pioneer David Liu and Leerink Partners senior managing director David Risinger. See you on Monday! — Nicole DeFeudis It’s a tough market for biotech companies, but the sector has been here before. Endpoints News’ Andrew Dunn reports that the playbook remains largely the same. Take a look here at the 10 moves Dunn said biotech CEOs are likely considering, including: 🪓 Buckle down and extend the cash runway: Drug programs on the chopping block can be out-licensed or spun into new subsidiaries. Or they may be ultimately shut down. The goal is to extend cash to make it through to catalysts for the most promising drug programs, Dunn reports. 💰 Selling royalty rights: For biopharmas with a potential approved drug in sight, royalty deals can raise capital without diluting shareholders. But they give away a chunk of future upside. 🤝 Pharma partnerships: They bring in cash, keep research going, and provide a credibility boost. But as former Vertex Pharmaceuticals CEO Joshua Boger told Dunn over a year ago: “Realize they’re going to be painful, it’s going to be horrible, and you need to do it.” Read the whole playbook here. And click here for more insight from Drew Armstrong and Max Bayer’s Q&A this week with Leerink Partners senior managing director David Risinger. “In a typical financial crisis, corporations have to think about their cash flows and balance sheets,” Risinger said. “But then the FDA-specific turmoil that is happening really makes it difficult for corporations to plan for the future.” 🌎 Much of the world got a reprieve from President Donald Trump’s tariffs this week. But the president said earlier in the week that pharma-specific tariffs would be arriving “very shortly.” Analysts weighed in on what a potential rollout could look like here. “We’re going to tariff our pharmaceuticals and once we do that, they’re going to come rushing back into our country,” Trump said at a National Republican Congressional Committee event. Trump has previously praised companies like Eli Lilly , Johnson & Johnson and Merck for boosting their US footprint. All three companies have announced multibillion-dollar investments to build or expand US factories. On Thursday, Swiss-based Novartis said it would invest $23 billion in American manufacturing and R&D over the next five years. A Novartis spokesperson declined to clarify how much of the $23 billion investment had already been planned or disclosed. Meanwhile, the European Federation of Pharmaceutical Industries and Associations warned of a potential “exodus” to the US. The group said in a statement on Tuesday that “unless Europe delivers rapid, radical policy change then pharmaceutical research, development and manufacturing is increasingly likely to be directed towards the US.” It called for “immediate action” on several fronts, including strengthening intellectual property provisions and “adopting a world leading regulatory framework conducive to innovation.” 💸 Amid the burgeoning trade war with China, a Congressional commission is looking to find a way for American biotechs to remain competitive. This week, the National Security Commission on Emerging Biotechnology — which is made up of members from both chambers of Congress as well as civilian experts — urged a $15 billion investment in the sector to keep up with Chinese competition. The timing comes amid cuts across the federal government, including at HHS, which laid out plans last month to cut thousands of employees. Sen. Todd Young (R-IN) recognized “the fiscal challenges associated with persuading colleagues to add new priorities to the list.” But he said the focus should be on setting the right priorities without needing to “fund everything.” This week’s recommendation echoes efforts of the Biosecure Act, a bill introduced last year. The legislation sought to ban US reliance on suppliers like WuXi AppTec, but didn’t eventually become law. Unlike the Biosecure Act, the commission’s report does not name specific Chinese companies. 💰 Merida Biosciences emerged from stealth this week with $121 million in its pockets . Their goal? Create and develop new medications for autoimmune diseases and allergies, with an initial focus in experimental drugs for a thyroid condition called Graves disease, food allergy and primary membranous nephropathy, an autoimmune kidney disease. Beating Xolair will be a challenge and may take years. Last year, the Roche and Novartis drug racked up $4.4 billion in sales, and other companies have tried to crack food allergy before. But CEO Adam Townsend thinks food allergy can be Merida’s “gateway into showing our science and how it works there.” 💬 Q&As with industry and academic thought leaders filled Endpoints’ newsletters this week, and what better way to start your weekend than by reading what they had to say? Elizabeth Cairns sat down with GLP-1 co-discoverer Jens Juul Holst to discuss the future of incretin-based drugs, and Ryan Cross had a conversation with gene editing pioneer David Liu about the economic and political turmoil in science. Both came from the sidelines of the Breakthrough Prizes in Life Sciences, also known as the “Oscars of Science.” We hope you enjoy.

Executives of major pharmaceutical companies warned the European Union that they’re likely to take the US’ side amid the threat of new tariffs. The European Federation of Pharmaceutical Industries and Associations said in a public statement Tuesday that “unless Europe delivers rapid, radical policy change then pharmaceutical research, development and manufacturing is increasingly likely to be directed towards the US.” The statement follows President Donald Trump’s “Liberation Day” tariff announcement last week that included 10% tariffs on all global imports and an additional 20% reciprocal tariff on goods from the EU. Pharmaceuticals were exempted from that announcement, however. The federation’s stance may ultimately be more posturing than substance, as the industry looks to ward off further industry-specific tariffs that Trump has warned are looming. Ireland has particularly drawn Trump’s ire for being a hotbed of pharmaceutical investments abroad. To back up its claim of a potential “exodus to the US,” the European trade group cited a survey among 18 “large and medium-sized” companies which, combined, identified more than €100 billion in planned capital and R&D investments that are at risk over the next four years. A list of respondents was not included, but the federation includes larger drugmakers that have a presence in Europe. The president of the group is Novo Nordisk CEO Lars Fruergaard Jørgensen, with Bayer pharma chief Stefan Oelrich and Ipsen CEO David Loew serving as first and second vice presidents, respectively. The group called on the EU to pay more for medicines, strengthen intellectual property laws, speed up its regulatory decisions and make sure that there’s continuity across environment and chemical legislation so that companies can build manufacturing facilities. “Europe needs to make a serious commitment to invest in a world class pharmaceutical ecosystem, or at best, risk being reduced to a consumer of other regions’ innovation,” the group wrote.