Latest news with #Soriot
Yahoo
01-05-2025
- Business
- Yahoo
AstraZeneca CEO calls for increased European investment in pharma
AstraZeneca CEO Pascal Soriot has urged European governments to increase investment in pharmaceutical innovation, warning of a growing imbalance between the US and Europe, which could threaten the region's long-term competitiveness in life sciences. Speaking during the company's Q1 2025 earnings call, Soriot said, 'Investment in innovation in pharmaceuticals in Europe has to go up.' He pointed to a decline in Europe's share of healthcare budgets allocated to innovative medicines, singling out the UK as an example. 'That share has been declining steadily over the last number of years, down to 7% of the healthcare budget being allocated to innovative medicines in the UK. What can you do with 7% of your healthcare costs allocated to innovating medicines? Of course, not much.' Soriot argued that to maintain competitiveness and ensure timely patient access to new therapies, European countries – particularly higher-income ones – must rebalance their healthcare spending. The comments come amidst increasing concern among European pharmaceutical companies about the region's ability to attract R&D investment. On 8 April, the European Federation of Pharmaceutical Industries and Associations (EFPIA) warned that the EU risks losing over €100m in planned capital and R&D investments between 2025 and 2029, unless urgent reforms are made to its regulatory and investment environment. Additionally, the CEOs of Novartis and Sanofi wrote a letter calling on the EU to increase drug prices towards the much higher levels paid by the US, saying it will encourage innovation. The letter, published in the Financial Times on 23 April, said that the European Commission (EC) should set a spending target for medicines and vaccines to 'fairly reward innovation'. Soriot emphasised the broader economic and strategic implications for Europe. 'I really think the key piece is that Europe, at least the richer countries in Europe, have to contribute more to pharmaceutical innovation, just like they have to contribute more to their own defence. It's a relocation of GDP… that would enable a lot of accelerated access, and suddenly a pricing level that would enable [rebalancing] the funding of that innovation between the US and Europe.' He added that while tariff-related uncertainties are a short-term concern for the industry, the more critical mid- to long-term issue is the structural gap in innovation funding. 'People think it's a question of price sometimes – no, it's also a question of delay. In many countries in Europe, patients have to wait two years, three years to get access, which [is] very restrictive.' AstraZeneca reported $13.6bn in Q1 revenue, a 10% year-on-year increase in constant currencies, driven by strong sales of cancer and biopharmaceutical products. The company reiterated its commitment to expanding in the US, where it currently derives about 40% of its sales. Soriot said AstraZeneca is making 'excellent progress' towards its goal of reaching $80m in total revenue by 2030. 'Our company is firmly committed to investing and growing in the US, and we continue to benefit from our broad-based source of revenue and global manufacturing footprint, including eleven production sites in the US… Additionally, we have even greater US investment in manufacturing and R&D planned,' Soriot added in the 29 April statement accompanying the earnings. Industry-wide, EFPIA has identified €16.5bn in investments considered at risk of relocation from the EU in the next three months alone. The group cited the US's lead over Europe in investor-critical metrics, including access to capital, intellectual property protection, regulatory speed, and financial rewards for innovation. Soriot concluded, 'I believe, I hope that we [industry] can continue working together to address these two issues,' referring to tariffs and the imbalance between Europe and the US. Navigate the shifting tariff landscape with real-time data and market-leading analysis. Request a free demo for GlobalData's Strategic Intelligence "AstraZeneca CEO calls for increased European investment in pharma" was originally created and published by Pharmaceutical Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Daily Mail
30-04-2025
- Business
- Daily Mail
Step up now or lose jobs to US, AstraZeneca boss Pascal Soriot warns Europe
Astrazeneca's boss has warned Europe is falling behind as it steps up investment in the United States. Pascal Soriot said innovation in pharmaceuticals 'has mostly been funded by the US' as he doubled down on plans to grow the business in America – which already accounts for 40 per cent of revenues. And urging Europe to step up its game, he said AstraZeneca will shift manufacturing across the Atlantic to avoid tariffs on pharma imports planned by Donald Trump. 'When you see the amount of investment that is going into the US, it really sends a very strong signal that Europe has to contribute to pharmaceutical innovation a lot more,' said Soriot. 'Otherwise, all these jobs, whether they are manufacturing jobs or R&D jobs, are going to move to the US over time.' Trump has repeatedly said he will slap tariffs on drugs imports, which could make life-saving treatments more expensive for Americans and encourage firms such as AstraZeneca to produce more in the US. Warning against such tariffs, Soriot told Bloomberg TV: 'We actually believe that a better incentive to attract investment in manufacturing and in R&D is to have a great tax policy that incentivises companies to invest in the country.' But he added that AstraZeneca's exposure to tariffs would fall over time as it shifted production. 'Beyond 2025, any impact will be short-lived, because of the ability we have to move things around,' he said. 'Our company is firmly committed to investing and growing in the US. 'We have even greater US investment in manufacturing and R&D planned.' AstraZeneca – Britain's largest company with a value of £160billion – reported a 10 per cent increase in revenue for the first three months of 2025. The rise came after it made strong sales of cancer drugs, with the oncology division reporting a 13 per cent surge in business. Separately, AstraZeneca is awaiting a potential fine in China over possible unpaid import taxes. AstraZeneca said authorities in Shenzhen have claimed the unpaid taxes amount to £1.2million and that it could face a fine 'of between one and five times the amount of unpaid importation taxes' if found liable – or up to £6million. Despite the turmoil, Soriot said: 'We remain very committed to China. It's an important market for us.'
Daily Mail
29-04-2025
- Business
- Daily Mail
Soriot's red flag for pharma: Trump's trade policies could have a devastating effect on healthcare, warns MAGGIE PAGANO
Sir Pascal Soriot is usually several steps ahead of the game, so always worth listening to. His latest red flag is that Europe is falling behind in healthcare innovation and manufacturing investments, risking lives, but also leaving the Continent trailing behind the US and China, with jobs moving across the Atlantic. It is a timely warning from the boss of AstraZeneca, Britain's biggest company by value and one of the world's giant pharma combines, coming as a sluggish Europe faces further upheavals from potential US tariffs and lower growth. Soriot is the most outspoken pharma boss so far to warn about the dangers. The heads of Switzerland's Novartis and France's Sanofi are also concerned, arguing that European price controls on medicines not only hurt innovation but make the region less attractive to investors. Even the European Federation of Pharmaceutical Industries and Associations is so worried about the danger of companies relocating to the US that it has stuck its neck out with a stark letter to the European Commission's head, Ursula von der Leyen, outlining radical reforms. Not surprisingly, Soriot was more cautious about criticising Donald Trump's proposed tariffs, saying instead that trade levies are not the most effective way of managing the pharma sector. Yet even the threat seems to be working. Companies follow the money but also the brains, which are moving to the US too. Like rival Roche earlier this week, Soriot also confirmed that the Cambridge-based giant would continue to invest in the US amid growing threats that tariffs may be imposed on pharmaceutical imports. AZ expects sales to the US will make up 50 per cent of the total over the next few years. But Soriot is quite rightly far more vocal in his criticism of European leaders, claiming the region should spend more on medicines as it is planning to do on defence to 'protect its health sovereignty'. The big question is whether EU leaders will take any notice. They commission endless reports on opening up the region to competition and innovation – the latest being a fat document from former ECB boss, Mario Draghi. The Draghi report was highly critical of the region's inertia, pointing out the EU should focus on technological investments to close the innovation gap with the US. And spot-on. But none of the proposals have been implemented. And time is running out if the bloc is to compete globally. As the hedge fund boss Kyle Bass wrote scathingly on X this week: 'Europe is an anti-growth, anti-capitalist, pro-tax, super-regulatory, loose collection of broken economies.' He did, however, make an exception for the Nordic countries and Poland. Investors who have shipped billions into French, German and British stocks since Trump took office, he said, were foolish, adding that Europe was 'a travel destination and a retirement community for the world'. Ouch. But could the fear of Trumpian tariffs – and European companies leaving – finally stir the EU block into action? It was only when Trump threatened to withdraw security support for his Nato allies that member countries started increasing their defence spending. Maybe Trump's trade policies will have the same effect on healthcare. Green heads roll Activist US fund manager Elliott has claimed its first green scalp at BP. Giulia Chierchia, head of strategy and sustainability, is quitting in June after the oil giant's decision to slash renewables and refocus on fossil fuels. She's gone because Elliott apparently wanted yet more proof from boss Murray Auchincloss that he is committed to moving even faster to cut costs and reduce spending. But Elliott can't be happy that the shares are down a fifth since February's about-turn, which was supposed to bring its valuation closer to peers like Exxon. They should be patient. It takes time to turn a supertanker around. Heard on the street If Reform wins in Runcorn tomorrow, Sir Keir Starmer is minded to sack Ed Miliband amid Cabinet disagreement over energy strategy. Apparently Rachel Reeves would like to revive oil and gas licences in the North Sea and water down Net Zero. If so, it is her first sensible idea.
Daily Mail
29-04-2025
- Business
- Daily Mail
Step up now or lose jobs to US, AstraZeneca boss Pascal Soriot warns European pharma firms
Astrazeneca's boss has warned Europe is falling behind as it steps up investment in the United States. Pascal Soriot said innovation in pharmaceuticals 'has mostly been funded by the US' as he doubled down on plans to grow the business in America – which already accounts for 40 per cent of revenues. And urging Europe to step up its game, he said AstraZeneca will shift manufacturing across the Atlantic to avoid tariffs on pharma imports planned by Donald Trump. 'When you see the amount of investment that is going into the US, it really sends a very strong signal that Europe has to contribute to pharmaceutical innovation a lot more,' said Soriot. 'Otherwise, all these jobs, whether they are manufacturing jobs or R&D jobs, are going to move to the US over time.' Trump has repeatedly said he will slap tariffs on drugs imports, which could make life-saving treatments more expensive for Americans and encourage firms such as AstraZeneca to produce more in the US. Warning against such tariffs, Soriot told Bloomberg TV: 'We actually believe that a better incentive to attract investment in manufacturing and in R&D is to have a great tax policy that incentivises companies to invest in the country.' But he added that AstraZeneca's exposure to tariffs would fall over time as it shifted production. 'Beyond 2025, any impact will be short-lived, because of the ability we have to move things around,' he said. 'Our company is firmly committed to investing and growing in the US. 'We have even greater US investment in manufacturing and R&D planned.' AstraZeneca – Britain's largest company with a value of £160billion – reported a 10 per cent increase in revenue for the first three months of 2025. The rise came after it made strong sales of cancer drugs, with the oncology division reporting a 13 per cent surge in business. Separately, AstraZeneca is awaiting a potential fine in China over possible unpaid import taxes. AstraZeneca said authorities in Shenzhen have claimed the unpaid taxes amount to £1.2million and that it could face a fine 'of between one and five times the amount of unpaid importation taxes' if found liable – or up to £6million. Despite the turmoil, Soriot said: 'We remain very committed to China. It's an important market for us.'
Sinar Daily
29-04-2025
- Business
- Sinar Daily
AstraZeneca 'firmly committed' to US amid tariff threat
The United States earlier in April opened the door to potential tariffs targeting pharmaceuticals, which have so far benefited from exemptions to Trump's sweeping levies on imports from trading partners. 29 Apr 2025 08:30pm The United States is a key market for the pharmaceutical industry, with Soriot saying earlier in the year that he hoped that the United States will represent approximately half of AstraZeneca's global revenue by 2030. - Photo by Saeed KHAN/AFP LONDON - British pharmaceutical giant AstraZeneca on Tuesday vowed to keep investing and growing its business in the United States, ahead of President Donald Trump's possible tariffs on the sector. "Our company is firmly committed to investing and growing in the US," chief executive Pascal Soriot said in an earnings statement, which also announced that first quarter profit had risen by over 30 per cent to US$2.92 billion. The United States earlier in April opened the door to potential tariffs targeting pharmaceuticals, which have so far benefited from exemptions to Trump's sweeping levies on imports from trading partners. He has also imposed a series of sector-specific levies, slapping tariffs on imports of steel, aluminium and autos, before launching a "national security" investigation into pharmaceutical imports. The United States is a key market for the pharmaceutical industry, with Soriot saying earlier in the year that he hoped that the United States will represent approximately half of AstraZeneca's global revenue by 2030. The pharmaceutical giant said on Tuesday it remains on track to achieve its total target of $80 billion in annual revenue by 2030. - AFP More Like This
