Pharma Firms Delay Europe Drug Launches Amid U.S. Pricing Pressure

Global pharmaceutical companies are delaying the launch of new medicines in Europe as they navigate pricing uncertainties driven by U.S. policy changes under President Donald Trump. The U.S. government has been pushing to lower prescription drug costs by linking them to prices in other developed markets, particularly Europe, through a “most-favoured-nation” pricing model. As a result, drugmakers are hesitating to introduce products in lower-priced European markets to avoid impacting their pricing power in the significantly larger U.S. pharmaceutical market.

Industry leaders and data indicate a noticeable slowdown in European drug launches since the policy shift. According to research by GlobalData, new medicine launches in Europe dropped by around 35% in the ten months following the U.S. executive order compared to the previous period. Executives, including those from European Federation of Pharmaceutical Industries and Associations, say companies are increasingly cautious, with some postponing or reassessing launch strategies amid ongoing uncertainty about how U.S. pricing benchmarks will evolve.

The ripple effects are also being felt across European healthcare systems, where governments traditionally negotiate lower drug prices. Some companies have already delayed or withdrawn products from certain markets, while others prioritize launching in the U.S. first. Experts warn that this trend could widen the gap in access to innovative treatments between regions, as pharmaceutical firms adopt a more strategic, wait-and-watch approach in response to shifting global pricing dynamics.

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