European Drug Prices Under Pressure Amid Global Pricing Shift
According to reports, US President Donald Trump previously signed an executive order aimed at aligning the prices of medicines sold in the United States with lower prices found in other countries, arguing that international price differences were unfair. Since then, several major pharmaceutical firms have reached agreements with Washington to reduce drug prices in the US market in exchange for temporary relief from tariffs.
Although Bayer was not part of these agreements, the head of its pharmaceutical division, Stefan Oelrich, said the industry is adapting to a changing pricing environment. He noted that discussions are ongoing with authorities in Europe, Japan, and other high-income regions to encourage higher prices for newly launched medicines, helping balance reduced revenues in the United States.
“In Europe, we need to raise the price level for new product launches,” Oelrich stated. “Otherwise, as an industry – and this naturally applies to us as well – we’ll be faced with additional discounts in the US that wouldn’t allow us to recoup our total expenses.”
He expressed similar views in other remarks, emphasizing that if Europe does not adjust its pricing structure, pharmaceutical companies may find it less attractive as a market for innovation. He also previously warned that tying US drug prices to European benchmarks could force companies into difficult choices about where to introduce new treatments, since lower European prices could reduce overall profitability.
Industry data suggests that new drug introductions across Europe have fallen by roughly 35% over the past ten months following the US pricing directive, according to reports based on GlobalData figures. Some pharmaceutical companies have also withdrawn certain products from European markets. Among them, Amgen removed its cholesterol treatment Repatha from Denmark, while Indivior pulled addiction treatment medications Subutex and Suboxone from Sweden and additional countries.
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