Greek pharma sector braces for US tariff fallout, patients risk first impact

Euractiv

6 days ago

Greek pharmaceutical and medical technology executives have voiced growing concern over the anticipated extension of US tariffs to medicines and medtech products, warning that the move could severely disrupt innovation, fracture supply chains, and curtail patient access - particularly in smaller EU markets such as Greece.
Industry leaders argue that the proposed measures risk undermining competitiveness and investment at a time when Europe is striving to strengthen its strategic autonomy in healthcare.
Following the announcement of the EU-US trade deal and the impending outcome of the Section 232 investigation, Greek industry voices are calling for urgent clarity and exemptions for critical health products.
They point out that the evolving US trade strategy and an insufficient EU reaction will significantly impact Greece, due to a challenging operating environment, ultimately impeding access to therapies and medical technology products.
'Imposing tariffs either by the US alone or by both sides, Greece is expected to suffer a significant blow,' Olympios Papadimitriou, President of the Hellenic Association of Pharmaceutical Companies (SfEE), told Euractiv. Fundamental risk for Greece
Papadimitriou points to the overburdened pharmaceutical environment in Greece, which is struggling with mandatory returns and insufficient funding, as the main factor that could amplify the implications of US tariffs.
'[Greece] is the country with the worst environment for on-patent medicines in the European Union (lowest prices and highest refunds). If economic pressure starts a chain of all kinds of cuts, Greece will be among the first to suffer the consequences,' he remarked.
These developments are expected to have the greatest impact on patients. As Labrina Barmpetaki, President of Pharma Innovation Forum (PIF), explained to Euractiv, if the appropriate action isn't taken, 'there is a growing risk of launch sequence prioritisation, where smaller EU countries, such as Greece, could be deprioritised or excluded altogether from access to new medicines.'
Some generics are exempt from the imposed US tariffs. However, the full impact remains uncertain as key elements are still unclear, and the anticipated imbalance caused by implementing tariffs threatens to disrupt supply chains.
'For Greece's export-oriented pharmaceutical sector, such tariffs would undermine future competitiveness and challenge established transatlantic flows,' Theodoros Tryfon, President, Panhellenic Union of Pharmaceutical Industries (PEF), tells Euractiv, adding that the generic industry is looking forward to further clarity on the scope of products to be exempted.
The biotechnology industry also underlines the risks of delays, higher costs, and reduced patient access due to potential tariffs on medical technology, which includes medical devices and in vitro diagnostics.
'Potential tariffs or restrictions on the movement of these products could lead to significant delays in the availability of life-saving technologies, increased healthcare costs, and jeopardised access to modern and effective solutions for patients,' the Hellenic Association of Medical and Biotechnological Product Enterprises (SEIV) notes in a statement to Euractiv.
For SEIV, patient health must not be used as a bargaining chip in trade disputes.
'Delays in the supply of critical medical technology products can have a direct impact on the quality and timeliness of care, particularly in countries with limited resources or heavy reliance on imported technologies.' Risks across the EU and the Atlantic
The implications of imposing export duties on pharmaceuticals will be far-reaching. Barbetaki notes the concerns about added strain on public healthcare systems, particularly in Europe, where access to medicines is largely state-funded.
'Such a shift could carry social and budgetary consequences if it disrupts the flow or affordability of essential treatments', she adds, highlighting that Europe faces structural hurdles in attracting pharma investment, especially compared to the US, which offers stronger funding, IP protection, faster regulation, and better innovation incentives.
Its market-driven healthcare model also gives it a clear competitive edge, Barbetaki points out.
As Papadimitriou notes, tariffs on medicines are a blunt instrument that will disrupt supply chains, impact investment in R&D, and ultimately harm patient access to medicines on both sides of the Atlantic.
'Any tariffs risk worsening existing shortages and further straining supply chains,' Tryfon warns, adding that Europe has consistently proven to be a reliable supplier to the US, particularly for critical medicines where it often serves as the main or only alternative to Asia.
Regarding medical technology, despite earlier assurances and expectations, the sector wasn't mentioned in the official announcement, with the products exempted based on the EU-US 'zero-for-zero' trade agreement. However, efforts are still underway for a last-minute change. Redisigned approach needed
'If the intent is to secure pharmaceutical investment in research, development and manufacturing, rebalance trade and ensure a fairer distribution of how global pharmaceutical innovation is financed, then there are more effective means than tariffs that would help, rather than hinder, global advances in patient care and economic growth,' Papadimitriou argues.
He explains, from a European perspective, that means 'rethinking how we value innovation, significantly increasing what the region spends on innovative medicines and creating an operating environment that can accelerate turning Europe's great science into new treatments.'
Barbetaki is on the same page: 'To remain globally competitive, Europe will need to strengthen its policy framework by supporting innovation, upholding strong IP protections, ensuring regulatory clarity, and aligning environmental and industrial legislation.'
However, she adds that Europe should also reconsider its approach to pricing policies and cost-containment measures, 'aiming for a different model to remain attractive for global pharmaceutical launches.'
The Greek pharmaceutical industry advocates for the exemption of EU-origin generics, biosimilars, and APIs, as Tryfon remarks.
'The EU and US essential medicines lists significantly overlap, which highlights the necessity for a tariff exemption on products that ensure uninterrupted patient access and are crucial for reinforcing transatlantic health resilience,' Tryfon explains.
Exemption is also crucial for medtech provision.
SEIV sent a letter to the Greek Ministry of Health and Greek Members of the European Parliament earlier in July, stressing the need for active support to exempt medical technology products from any trade or tariff measures.
It followed a joint letter from MedTech Europe and the US-based AdvaMed to European Commission President Ursula von der Leyen, expressing strong concern over the exclusion of the sector from the list of industries included in the 'zero-for-zero' trade agreement. Greek MEPs weigh in
From an economist's point of view in a modern, globalised world, tariffs do not make sense, S&D and PASOK MEP Nikos Papandreou told Euractiv, noting that they are used as a weapon, 'to force trading partners to do things they wouldn't do otherwise.'
However, he doesn't think that the EU should have reacted by imposing high tariffs on American goods as a form of revenge. 'Nevertheless, it is a 'win-loss situation'; a win for the US and a loss for Europe. Politically, it is a defeat; economically, it's better than what it may have been,' he says.
For the pharma industry, the story is a mixed bag, according to Papandreou, as key aspects remain unclear. 'Therefore, it's too early to determine what will happen to pharma overall. Will this encourage EU investments in the USA? My prediction in this unpredictable situation? Not a cent.'
EPP & ND MEP Dimitris Tsiodras also awaits the finalised deal to draw safe conclusions. He recognises, however, that regarding pharmaceuticals, the exemption of certain generics will help ensure the availability of medicines for Greek and European patients and prevent the emergence of further shortages.'
[Edited by Brian Maguire]