Global pharmaceutical companies are ramping up pressure on European governments over drug pricing, borrowing a tactic that helped them win concessions in the United Kingdom by threatening to scale back investment and expansion plans.
The strategy comes as several European capitals push back against higher medicine prices, setting up a fresh standoff between policymakers seeking to control healthcare costs and drugmakers arguing that tougher pricing rules could weaken innovation and investment.
According to the report, the industry scored a recent win in Britain after the government agreed to increase medicine spending as part of a broader deal aimed at avoiding U.S.-imposed tariffs.
In Germany, major pharmaceutical companies have warned that proposed changes to pricing laws could affect future investments. Pfizer’s chief executive sent a letter to the German chancellor warning that planned investments could be at risk, while AstraZeneca said it may not launch new medicines there if the changes go ahead.
Eli Lilly also said earlier this month that it would halve a planned $2.7 billion investment, citing the proposed legislation.
The episode highlights how pricing policy has become a central battleground in Europe, with pharma companies increasingly linking medicine access and local investment decisions to the terms set by governments.
The pressure campaign underscores a familiar industry argument: that lower margins and tighter price controls could discourage research, manufacturing and future product launches in key markets.
At the same time, European governments are under pressure to contain public spending on medicines, especially as healthcare budgets tighten and demand for new therapies rises.