The work of the Critical Medicines Alliance highlighted the need for a substantial and factual body of data to determine the competitiveness gap faced by the European actors of the pharmaceutical supply chain. SICOS, the French Syndicate of Fine Chemical and Biotech Industries, and a member of EFCG,  commissioned an extensive study from Advancy, published in September 2024.

This study highlights the significant competitiveness deficit faced by the European pharmaceutical sector, particularly in the production of essential medicines and active pharmaceutical ingredients (APIs).

These findings underscore the urgent need for Europe to support and protect its pharmaceutical industry to ensure the sustainability of local production and the health of European citizens.

Key findings include:

• Competitiveness gap: Europe suffers from a major competitiveness deficit compared to regions such as  India and China, leading to a collapse in the production of APIs and GMP intermediates in Europe. In addition, Europe faces competitiveness gaps of 50 to 100% due to asymmetrical constraints, particularly social, environmental, and safety-related.
• Dependence on Imports: Over 74% of the European medicines value chain depends on imports, and 80% of the top 10 best-selling generics have experienced shortages since 20161.
• Support Measures: Europe provides significantly less support to its national production (€0.25 billion) compared to India (€3 billion), China (€1.5 billion), and the US (€1 billion).
• Impact on Jobs and Health: The situation poses a risk to the health of citizens and threatens over 150,000 direct jobs in the production of pharmaceutical active ingredients1.
• Call for Action: The study calls for Europe to implement a Critical Medicines Act to defend local, competitive, sustainable, and resilient production of active ingredients and pharmaceutical intermediates.