Xin Lang Cai Jing·2025-12-28 12:13Core Insights - European pharmaceutical investments are declining as companies shift focus to the US and China due to low R&D spending in Europe [1][2] - High-income European countries spend about half on innovative drugs compared to the US, with Europe’s share of global pharmaceutical R&D investment dropping from 41% to 31% over the past two decades [1] - In 2024, Europe’s R&D spending is expected to grow by 4.4%, significantly lower than the US's 5.5% and China's 20.7% [1] Group 1 - The decline in investment has resulted in Europe lagging behind China in new drug approvals, with the European Economic Area's share of global clinical trials halving from 22% in 2013 to 12% in 2023 [4] - Pharmaceutical companies warn that without policy adjustments, Europe risks falling further behind the US and being overtaken by China in innovation and drug access [4] - The challenges faced by pharmaceutical companies in Europe include high R&D costs and diverse national issues that complicate solutions [2] Group 2 - Trade agreements between the EU and the US have set a new tariff cap of 15% on drugs exported from the US to the EU, but it remains uncertain if this will restore investment in Europe [5] - The UK’s agreement with the US is expected to cost £3 billion and increase NHS drug spending from 9.5% to 12% of its budget, raising concerns about funding sources [5] - There are fears that if additional funding for drug spending comes from existing NHS budgets, it could lead to higher mortality rates due to the replacement of cost-effective treatments with expensive new drugs [5]