Novartis (NVS) Chief Executive Vas Narasimhan and Paul Hudson, his counterpart at Sanofi (SNY) said Wednesday that EU "price controls and austerity measures" are decreasing the bloc's attractiveness for pharmaceutical companies.
In a letter to the Financial Times, Narasimhan and Hudson said that the US and China are trying to boost innovation, while in Europe "launch prices are suppressed, patented medicines' growth capped, and prices reduced when new applications are found."
"We see a strong outlook for the US -- thanks to policies and regulations conducive to fast and broad patient access to innovative medicines. Unfortunately, this cannot be said for Europe," the CEOs said.
"Against a backdrop of waning European biopharma competitiveness, the uncertainty of tariffs is further reducing incentives to invest in the EU," the letter said.
"Europe has leading universities, talent and hospitals. With deregulation and an attractive market for innovation, it can succeed. However, it must act decisively and urgently or decline will set in and departure of companies will accelerate," the letter said.
The European Commission didn't immediately respond to a request for comment by MT Newswires.
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