Inside EU Health: Medicines for Europe appeals court decision; pharmaceutical exports support 926,000 EU jobs
Generic makers appeal to fix tax on treatment; pharmaceutical exports supported 926 000 EU jobs
Generics makers appeal to fix tax on treatment
Medicines for Europe announced its decision to challenge the Court of First Instance's decision that it lacked legal standing to challenge the UWWTD. The technical decision meant that the Court did not address the substance of their arguments.
The UWWTD had a relatively easy legislative journey and pushback from industry really only started in the last two years. Medicines for Europe’s Director General, Adrian van den Hoven, warns of the crushing effect this could have on the generics sector which, while accounting for 70% of dispensed medicines and 90% of critical medicines used in the EU, only accounts for 19% of overall market value.
For EU producers of generics, even relatively minor price changes can prove existential, given low profit margins and price-cap policies. Add to this mix a geopolitical energy crisis and supply disruption, and you have a perfect storm.
Cognitive dissonance?
At the same time, the EU is negotiating the Critical Medicines Act (CMA) to address medicine shortages. Over 90% of the medicines on the EU’s critical medicines list are generics. The CMA seeks to reduce dependence on third-country suppliers and is proposing support for strategic projects and updating procurement rules to promote EU production. Medicines for Europe argues that the UWWTD would add to the pressure on the generics sector.
Catherine Feore
Pharmaceutical exports supports 926 000 EU jobs
Eurostat has published its latest FIGARO data on pharmaceutical employment, including indirect effects. In 2023, EU exports of pharmaceutical products to non-EU countries supported the employment of 926,000 people in the EU, representing 4.3% of total EU employment. 325,000 were directly employed by the sector.
Looking at destinations, the US stands out as the area of strongest growth, with employment almost doubling since 2010. By 2023, 104,000 people were employed in the EU pharmaceutical sector due to US demand.
