Europeans must do more to boost pharma or risk losing jobs and investment to the US, warns GSK boss
GSK's boss has joined other industry chiefs warning the UK and Europe need to 'do more' to support the industry or risk losing jobs and investment cash to the US.
The pharma giant's chief executive Emma Walmsley said European nations faced 'tough choices' on investment'.
But she 'absolutely agreed' that backing the creation of new drugs and vaccines was 'one of the best investments' a country could make.
Walmsley added: 'It is key that the business environment stays competitive. Europe and the UK could do more in that regard.'
The comments echoed those of AstraZeneca's boss Pascal Soriot who said the continent was at risk of falling behind America as an attractive destination for businesses.
GSK yesterday reported better-than-expected results for the first three months of this year, with sales rising 2 per cent to £7.5billion while profits were up 4 per cent at £2.5billion. Shares rose 3.6 per cent, or 51.5p, to 1483.5p.
Despite the growing threat of US tariffs, GSK said it was 'well positioned' to respond to any new import taxes.
America is the firm's largest market for its medicines and vaccines. Last year, more than half of the company's sales came from the US.
Walmsley said America remained the company's 'number one market'. AstraZeneca's Soriot said on Tuesday that research and development of new drugs 'has mostly been funded by the US'.
'He warned that if Europe did not keep up, more jobs in the sector would 'move to the US over time'.
Many drugmakers were already investing heavily in the US, where medicine prices are the highest in the world and as a result present a bigger potential profit.
But the trend has been accelerated by recent threats from President Donald Trump that he will slap tariffs on pharmaceutical imports, encouraging firms to move factories and laboratories across the Atlantic.
Pharma bosses on the continent have called for the European Union to allow them to charge higher prices for drugs to help boost investment in new medicines and better compete with American rivals.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economist
3 hours ago
- Economist
Factory work is overrated. Here are the jobs of the future
Trumpian types are unanimous: America needs factories. The president describes how workers have 'watched in anguish as foreign leaders have stolen our jobs, foreign cheaters have ransacked our factories and foreign scavengers have torn apart our once beautiful American dream'. Peter Navarro, his trade adviser, says that tariffs will 'fill up all of the half-empty factories'. Howard Lutnick, the commerce secretary, offers the most cartoonish pitch of all: 'The army of millions and millions of human beings screwing in little screws to make iPhones—that kind of thing is going to come to America.'
Fashion United
3 hours ago
- Fashion United
French Senate to vote on regulating fast fashion
The French Senate is due to vote Tuesday on a bill to regulate the fast fashion industry, by sanctioning companies and banning advertisements. The bill is targeted at Chinese-founded e-commerce giant Shein, which has a reputation for selling lower quality clothes at a very low price. Easy to order and replace, fast fashion items are exported to France on a large scale, causing pollution and saturating markets. Adopted by the lower house National Assembly in March 2024, the bill will be voted on by the Senate later on Tuesday and is expected to pass, with backing from the government and widespread support in the chamber. The vote is not the final legislative hurdle: a joint committee of senators and lower house deputies is expected to meet from September to produce a joint text, prior to the final adoption of the law. The text plans to "reduce the environmental impact of the textile industry", said Anne-Cecile Violland, the centre-right member of parliament who proposed the bill. Fast fashion is a growing market in France and between 2010 and 2023, the value of advertised products grew from 2.3 billion euros to 3.2 billion euros. Around 48 clothing items per person are released into the French market each year, and 35 are thrown away every second in the country, according to the state environmental agency Ademe. Fast fashion poses a "triple threat", said the minister for ecological transition, Agnes Pannier-Runacher. "It promotes overconsumption, causes ecological disaster and threatens our businesses," she said. Slamming an "invasion" of products that "do not last", the minister expressed hope it would help change things in Europe. Once adopted in France, the European Commission will be notified to ensure it complies with European law according to Pannier-Runacher. Targeting fast fashion The Senate, dominated by the right, modified the bill to target "ultra" fast fashion companies, such as Asian websites Shein ou Temu. The Senate's amendments plan to leave out French and European brands that may be affected by the bill, such as Zara, H&M and Kiabi. The fashion giants will still be obliged to notify their customers about the environmental impact of their products, according to the new bill. "I have no intention of making French brands that contribute to our country's economic vitality pay a single euro," said rapporteur Sylvie Valente Le Hir, member of the right-wing The Republicans party. The bill will impose stricter sanctions on fast fashion companies by scoring their "environmental communication". This "eco-score" will affect all fast fashion companies, Pannier-Runacher said. Those with the lowest scores will be taxed by the government up to 5 euros per product in 2025 and up to 10 euros by 2030. This tax cannot go beyond 50 percent of the price of the original product. Advertisement ban The bill would impose sanctions on influencers who promote such products and ban fast fashion advertisements. The regulation of the fast fashion industry will only succeed with a "collective effort", and not by targeting "a single actor," Shein spokesperson Quentin Ruffat told RTL radio on Monday. According to Ruffat, the law will add "a tax of 10 euros per sold item of clothing by 2030" and "impact the purchasing power" of French people. Environmental organisations are also worried that the law may be misinterpreted. Debates may amount to an interesting framework which still lacks substance, according to Green Senator Jacques Fernique. On Monday, the Textiles Industry Union (UIT) recognised the bill as "a first step" and hoped for its "rapid adoption ... even if the text does not entirely fit our expectations".(AFP)
Daily Record
3 hours ago
- Daily Record
Tony Bloom Hearts cash plan revealed as chief admits 'difficult' financial season coming up but profit isn't the end game
Andrew McKinlay acknowledges that there's a gap to plug after the Jambos failed to qualify for Europe this season Andrew McKinlay has revealed how Tony Bloom's £10million investment will help Hearts in one of their "hardest ever seasons" financially. The Brighton owners' cash injection is set to be approved at a club EGM next week after being voted through by majority shareholder, the Foundation of Hearts. However, the Jambos' failure to qualify for European football this season after a bottom six Premiership finish will leave a gap in their finances that they are not used, McKinlay freely admits. The plan is to get back there under new head coach Derek McInnes. But in the mean time, Bloom's dough means they won't have to tighten their belts when it comes to recruitment this summer. 'It's a big gap, there's no doubt about that,' said McKinlay. 'We're not looking to decrease the investment in the squad, so the Tony Bloom investment is very important to allow us to do that for at least a season. "We don't want to just spend the Tony Bloom investment on plugging gaps, but the timing is quite important whilst we establish a better player trading model than we've had. "When we talk about the analytics, bringing in better players, there's two pieces to that. Firstly, we're better on the pitch and we do better. But then if those players do better and we do better, then their value is likely to increase and we're likely to sell. 'If you look at the models of Brighton and Union, that's the way it works. Union, without player trading, I don't know the numbers off the top of my head, but there would be significant losses. "If you look at Scottish football, at most clubs it's losses without someone putting money in or player trading. Hopefully we'll be back in Europe this time next year but, as we all know, the guaranteed group stage for finishing third or winning the Scottish Cup won't be there. So, it harder again to get that." Player trading will be key to the capital club in the longer term - essentially, buying quality for as low as they can and selling it for maximum value when the time is right. McKinlay admist that turning a profit isn't the aim of the game, but reinvesting as much as possible back into the playing squad and the club as a whole. 'We are envisaging next season being one of our hardest seasons financially," the Tynecastle chief executive told the Edinburgh Evening News. "It's not going to be the hardest season financially compared to historical seasons. "It's like everything in life. You get used to having a certain level of income. You spend based on your level of income. As a football club, that's very difficult because of Europe having such ups and downs. But that's the reality and that's where we are at the moment. 'So, the investment that we're expecting to come in soon will be very helpful in allowing us almost to transition and change the business into a business that does break even. "We're not looking to make profits, we're looking to get all the money back into the club. We're not looking to pay dividends or anything like that. It's to break even, but part of that will be significantly better player trading.'
