Major pharmaceutical companies have issued a stark warning to the European Commission that they may redirect up to €100 billion in planned European investments to the United States and other regions.
According to a report in the Irish Times, a letter signed by several pharmaceutical heavyweights—including Ireland-based operations of Pfizer, Eli Lilly, and MSD (known as Merck in North America)—cautions that EU member states could face significant economic losses from an industry “exodus” as these companies look to expand their manufacturing capacity in more favorable markets.
The warning comes amid growing concerns about Europe’s competitiveness in the global pharmaceutical sector, which has been a crucial industry for Ireland’s economy in particular. Ireland hosts operations for many of the world’s largest pharmaceutical companies, with the sector employing thousands of workers across the country and contributing substantially to Irish exports.
While specific reasons for the potential investment shift were not detailed in the report, pharmaceutical companies have previously expressed concerns about regulatory frameworks, pricing policies, and incentives for innovation within the European market.
This development could pose serious challenges for European economies that rely heavily on pharmaceutical manufacturing and research, with potentially significant implications for employment, tax revenue, and economic growth if the warned redirection of investment materializes.