Pharma industry could turn its back on Europe, warn KPMG commentators
27 March 2001
Europe is at risk of losing its position as a home for pharmaceuticalcompanies and becoming simply a market for their products, according to UK-based financial services group KPMG. It says that investment in Europe's pharmaceutical industry, and the jobs and revenues that go with it, could continue to decline as Europe's business environment drives companies to the USA and other regions.
These comments were prompted by the recent French government deal with Pharmacia over the price of the firm's COX-2 inhibitor Celebrex (celecoxib). Under the terms of the deal, Pharmacia agreed to sell its arthritis drug (which produced turnover for the company of $772 million in fourth-quarter 2000) within the state reimbursement system at a "European" price, but with a formal agreement that this will be reduced 18% in July 2004.
KPMG industry commentators believe that the French move, while understandable from the perspective of both sides, is another symptom of the problems discouraging major pharmaceutical firms from focusing their investments in Europe.
This article is accessible to registered users, to continue reading please register for free. A free trial will give you access to exclusive features, interviews, round-ups and commentary from the sharpest minds in the pharmaceutical and biotechnology space for a week. If you are already a registered user please login. If your trial has come to an end, you can subscribe here.
Unfettered access to industry-leading news, commentary and analysis in pharma and biotech.
Updates from clinical trials, conferences, M&A, licensing, financing, regulation, patents & legal, executive appointments, commercial strategy and financial results.
Daily roundup of key events in pharma and biotech.
Monthly in-depth briefings on Boardroom appointments and M&A news.
Choose from a cost-effective annual package or a flexible monthly subscription
The Pharma Letter is an extremely useful and valuable Life Sciences service that brings together a daily update on performance people and products. It’s part of the key information for keeping me informed
Pharma industry could turn its back on Europe, warn KPMG commentators
Europe is at risk of losing its position as a home for pharmaceuticalcompanies and becoming simply a market for their products, according to UK-based financial services group KPMG. It says that investment in Europe's pharmaceutical industry, and the jobs and revenues that go with it, could continue to decline as Europe's business environment drives companies to the USA and other regions.
These comments were prompted by the recent French government deal with Pharmacia over the price of the firm's COX-2 inhibitor Celebrex (celecoxib). Under the terms of the deal, Pharmacia agreed to sell its arthritis drug (which produced turnover for the company of $772 million in fourth-quarter 2000) within the state reimbursement system at a "European" price, but with a formal agreement that this will be reduced 18% in July 2004.
KPMG industry commentators believe that the French move, while understandable from the perspective of both sides, is another symptom of the problems discouraging major pharmaceutical firms from focusing their investments in Europe.
This article is accessible to registered users, to continue reading please register for free. A free trial will give you access to exclusive features, interviews, round-ups and commentary from the sharpest minds in the pharmaceutical and biotechnology space for a week. If you are already a registered user please login. If your trial has come to an end, you can subscribe here.
Login to your accountTry before you buy
Free
7 day trial access
Become a subscriber
£820
Or £77 per month
Chairman, Sanofi Aventis UK
Companies featured in this story
Sign up to receive email updates
Join industry leaders for a daily roundup of biotech & pharma news
Today's issue
Company Spotlight
Copyright © The Pharma Letter 2024 | Headless Content Management with Blaze