Pharma manufacturers invest in Europe despite tariffs and global competition, seizing opportunities. European share of pharma manufacturing dropped significantly in the last 25 years. Drug shortages during Covid-19 pandemic exposed manufacturing gaps. EU Pharma Package proposed for overhaul of pharmaceutical law to address shortfall.

Agreed EU Pharma Package includes provisions for companies to supply medicines to meet patient needs or lose protection. Marketing protection reduced from two to one year, data protection retained at eight years. Bolar exception expanded to ensure generics and biosimilars can launch immediately after patent expiration. Experts question effectiveness of measures.

32 pharma companies consider pulling €16.5bn investments in Europe due to regulatory dissatisfaction. Nonetheless, manufacturing projects continue, with CDMO AGC Pharma Chemicals inaugurating a new facility in Spain. US customers seek alternative suppliers due to trade tensions, driving regionalised strategies for CDMOs in Europe.

US tariffs aimed at boosting domestic production, but high costs prompt many to consider Europe for outsourcing. Strict EU regulatory standards seen as an advantage for establishing operations in Europe. Poland-based Mabion and Germany-based Rentschler Biopharma highlight benefits of manufacturing in Europe.

Scientific expertise and regulatory standards in Europe attract pharma manufacturers. Rentschler Biopharma makes significant investment in Germany to increase biopharmaceutical production capacities. CDMOs diversify based on client interests, with focus on increasing capacities and expanding strategies for growth. Rentschler Biopharma, a family-owned business, had plans to expand in the US before tariffs were announced in 2025. Clients can transfer products between US and Germany sites. New US companies prefer manufacturing in the US, says CEO Meyer.

German CDMO Sanner opened new facilities in China and the US in 2023. CEO Verheyden emphasizes agility and flexibility in their strategy, allowing them to compete globally. Local representation shields them from pharmaceutical trade tariffs, focusing on growth in China and Europe.

Sanner sees rapid growth in China, but also envisions a revival of Europe’s biopharma sector. The company’s Bensheim facility aims to reignite Europe’s biopharma industry. With a focus on Europe, China, and the US, Sanner remains competitive in the global market.

Read more at Yahoo Finance: Why pharma manufacturers are still investing in Europe