European pharma companies warn of exodus to US as tariffs loom

Pharmaceutical companies warned European Commission President Ursula von der Leyen of a potential exodus to the US as tariffs loom, an industry group said following a meeting Tuesday.

“The US now leads Europe on every investor metric from availability of capital, intellectual property, speed of approval to rewards for innovation,” the European Federation of Pharmaceutical Industries and Associations said in an e-mailed statement. “Now with the addition of tariffs, there is little incentive to invest in the EU and significant drivers to relocate to the US.”

As much as 85% of capital expenditure investment and up to half of research and development spending are at risk, based on a survey of 18 international companies by the trade group. That would translate into some €103.2 billion ($112.9 billion).

The drugmakers demanded “radical policy change” in the European Union, including stronger intellectual property provisions and coherent policies across environmental and chemical legislation. The EFPIA represents some 40 pharma companies operating in Europe, including Bayer AG, AstraZeneca Plc and Novartis AG.

While drugs were excluded from sweeping tariffs announced by US President Donald Trump, the industry expects them to come soon.

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Published on April 9, 2025