- A lobby group representing the generic drugmakers in Europe has pointed out that the cost inflation, rising energy costs, and price control policies have made manufacturing in the region unsustainable.
- In an open letter on Tuesday, Medicines for Europe, whose members include leading generic drug manufacturers such as Teva Pharmaceutical ( TEVA ), Viatris ( NASDAQ: VTRS ), and Sandoz unit of Novartis AG ( NVS ) ( OTCPK:NVSEF ), called on the EU to introduce supportive policies to address the situation.
- The group argues that the COVID-19 and the Ukraine-Russia war have led to 9% general inflation, a 50-160% rise in raw material costs, and up to 500% increase in energy costs, worsening a challenging situation caused by the pricing pressure.
- With a tenfold rise in electricity prices at some of the European production sites, “this threatens to undermine medicines supply and our industry’s efforts,” Medicines for Europe said, noting that off-patent drugs account for 70% of medicines used in the EU.
- “We therefore call on the EU to help us tackle this challenging situation with sustainable policies that are aligned with European strategic autonomy,” the group added.
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EU generic drugmakers flag risks to production due to rising costs