Draghi’s Prescription for a Healthier European Pharmaceutical Sector

11th September 2024

Health

Portland

Former Italian Prime Minister Mario Draghi’s recent report on EU competitiveness offers a potential lifeline for the European pharmaceutical sector. While acknowledging the sector’s strengths, Draghi identifies a growing competitiveness gap with the US, particularly in biologics, orphan drugs, and advanced therapies.

What’s ailing EU pharma? Draghi points to four key issues:

  • Lower and fragmented R&D investment: The EU trails the US in both public and private R&D spending, hindering innovation.
  • Slow and complex regulatory framework: Obtaining drug approval in the EU takes significantly longer than in other regions, delaying the introduction of new treatments.
  • Complexities surrounding the European Health Data Space (EHDS): Uneven uptake of GDPR by Member States hampers the effective use of health data for research and development.
  • The need to harness AI: Draghi highlights the potential of AI to revolutionize healthcare and calls for the development of EU-wide “AI Verticals”.

Draghi’s recommendations present a roadmap for change and offer several opportunities for EU pharma companies to communicate their commitment to innovation and patient access:

  • Embrace the potential of the EHDS: Draghi calls for maximising the impact of the EHDS, particularly by facilitating access to and sharing of electronic health records. This presents a chance for pharma to highlight its leading role in data privacy and responsible data use.
  • Advocate for streamlined clinical trials: Draghi’s call for streamlining multi-country clinical trials within the EU provides an opening for pharma to emphasise its commitment to accelerating the development of new treatments and trialling them in a responsible and diverse manner.
  • Collaborate on HTA and pricing: Draghi recommends expediting market access through coordinated action on guidance, pricing, reimbursement, and procurement. This presents a platform for pharma to demonstrate its willingness to work with stakeholders on sustainable pricing models and intra-market regulation.
  • Champion the potential of AI: Draghi’s emphasis on AI creates an opportunity for companies to highlight their own investments in AI-driven drug discovery and development and leading role in its responsible use.

David Earnshaw, President, Portland Communications Brussels, said:

“The history of the European project is littered with reports by great (usually) men. The ones that have real impact 1) mainly diagnose and leave the prescription to the politicians and 2) are published at the right time. Draghi succeeds on both counts: it’s now for the VDL II Commission about to come into office to design the action plan to achieve the ideas set out by Draghi. Comparison with the Ceccini report in the 1980s – which coincided with the Delors era and significantly the completion of the single market – is justified, and obvious! The Draghi report could become the intellectual underpinnings of the VDL II Commission: it should be studied carefully”.

By proactively addressing these recommendations, pharmaceutical companies can position themselves as key players in strengthening European competitiveness and delivering innovative medicines to patients

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