Described by Time Magazine as “not just an election year. [But] perhaps the election year”, in 2024 an estimated 49% of the world’s population are going to the polls. In Europe, a new parliament have taken their seats, and the European Commission’s President, Ursula von der Leyen, has laid out the political guidelines for the next mandate.
The life sciences sector is unique. It can deliver scientific and medical breakthroughs with the power to transform the lives of patients while driving Europe’s economic growth, resilience and security. It is, however, under pressure.
It is against this backdrop of global change, that EU leaders have underlined the importance of regaining Europe’s competitive edge and enhancing the region’s economic security and resilience. Geopolitical, societal, economic, health and climate challenges are driving the need for a clear direction and policy coherence with a sense of ambition. That is certainly true for life sciences in Europe, and reflected in the welcomed inclusion of a life sciences strategy in the president’s political guidelines.
Despite contributing more to the EU’s trade balance than any other sector, being responsible for about 20% of all research spending in Europe[1] and employing around 900,000 people across the region, Europe’s life sciences sector is facing intense competition from the US and China. Here, more ambitious, dedicated life sciences strategies are driving growth.
Over the last two decades, a quarter of Europe’s share of global R&D investment has been redistributed to other regions of the world. Similarly, our share of global clinical trials has fallen from 25.6% to 19.3% in the last decade.[2]
A new mandate is an opportunity for a new approach, one that will help secure the future of the sector in Europe, allowing us to compete with the US and China. The Letta Report and imminent Draghi Report are important steps in the wider drive for European competitiveness, but the multiplicity of legislation and initiatives that impact our sector underlines the need for a coordinated approach dedicated to the sector’s specific needs.
We have to align the EU leaders’ call for a more competitive Europe with a revision of EU pharma legislation and ensure that it boosts and not weakens the competitiveness of one of our most important sectors.
Regulatory reforms have the potential to enhance Europe’s life sciences offering. However, the erosion of IP rights, a lack of investment in health innovation, failure to address skills gaps or improve access to funding means the net impact of policy makes it increasingly difficult to discover, develop and manufacture new medicines in Europe.
Avoiding incompatible and contradictory policy initiatives as well as creating an environment that will lead to a healthier, more resilient Europe should be central to any EU life sciences strategy.
The start of a new mandate is a good moment for reflection. Last month, EFPIA published a Competitiveness Strategy for European Life Sciences, which included a series of recommendations to reinvigorate the sector.
The strategy should help Europe turn ideas into innovation, fostering competitive European biotech and pharmaceutical clusters. European biotech companies can access only around 20% of the finance that their US counterparts can.[3] We need a new level of support to retain European start-ups and strengthen European capital markets. It should create EU framework programs to foster partnerships and health security and reinforce internationally competitive IP rights and regulatory incentives.
To become the location of choice for research, development and manufacturing we need to address skills gaps by improving STEM education and attract the best talent from the rest of the world. Today, nearly three-quarters of European science graduates choose to remain in the US in hubs like Boston and San Francisco after completing their doctorates.[4][5][6][7] We need to develop harmonized, agile clinical trial ecosystems that support multiple-country clinical trials and promote the effective access and use of health data to fuel research, development and manufacturing of innovative health technologies.
With an aging population, increased burden of chronic disease, a shrinking workforce and the impact of climate change, Europe has to invest in health. Through strategic funding, infrastructure upgrades, prevention, digitalization, national framework conditions and green practices, the EU can support member states to deliver better health for its citizens, efficiencies for health systems and health innovation.
We believe we can secure Europe’s place as a global leader in life sciences. It would mean ensuring that the European Medicines Agency has enough resources to deliver an ambitious, future proof regulatory framework and be a leading voice in international regulatory convergence. It would require open trade and partnership agreements on life sciences with trusted countries and new tools and initiatives to attract foreign direct investment into European life sciences.
Just imagine if Europe prevented the next pandemic, found the treatments to slow down Alzheimer’s or transformed the lives of patients with chronic disease. That is EFPIA’s vision for the future of Europe’s life sciences sector. An EU life sciences strategy – with dedicated oversight and accountability – could help turn that vision into a reality.
[1] https://pharmaboardroom.com/articles/five-key-trends-in-european-pharma-innovation/
[2] Wilsdon, T., Armstrong, H., Sablek, A., & Cheng, P. (2022). Factors affecting the location of biopharmaceutical investments and implications for European policy priorities. Charles River Associates.
[3] https://www.mckinsey.com/industries/life-sciences/our-insights/infographic-capital-landscape-for-european-biotechs-is-maturing-but-it-continues-to-trail-the-united-states
[4] https://cset.georgetown.edu/article/the-global-distribution-of-stem-graduates-which-countries-lead-the-way/
[5] https://www.politico.eu/article/report-highlights-lost-human-capital-of-eu-brain-drain-to-us/
[6] https://ec.europa.eu/regional_policy/en/newsroom/panorama/2022/10/10-05-2022-europe-seeks-to-tackle-brain-drain-of-young-people-from-hard-hit-regions
[7] https://www.scienceeurope.org/events/talent-retention-how-can-europe-tackle-the-challenges-of-brain-drain-and-capacity-building-in-eu13-countries/
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