The European Union stands to lose €2 billion of investment a year in medicines research and development if a law overhauling the bloc’s pharmaceutical regime goes ahead, an industry group warned Monday, according to Bloomberg.
The European Commission wants to shorten the standard period of patent protection for new medicines from eight to six years, as part of a wider plan to ensure affordable access to drugs and boost innovation.
It’s a measure that will dramatically decrease the incentive to invest in Europe, escalating a trend which has already seen the continent lose a quarter of global R&D investment during the last two decades, the European Federation of Pharmaceutical Industries and Associations said in a report.
Europe’s share of global R&D will fall to 21% by 2040, compared with 37% in 2010, while China’s contribution will surge to 17% from 2% over the same period, the report said.
The proposals will likely harm, rather than strengthen European competitiveness, Lars Fruergaard Jorgensen, chief executive officer of Novo Nordisk A/S and EPFIA president said in a statement.
“This will have a negative impact on the European economy,” he said.
Europe is overhauling swathes of legislation in the industry, energy, technology and financial sectors to make laws more people focused and to mitigate climate change.