The European biopharmaceutical industry, as represented by EUCOPE’s membership, plays an important role in the EU27 economy through its substantial contributions to gross domestic product (GDP), employment, and international trade. However, this contribution is not guaranteed. Lack of global policy predictability, complex and fragmented EU27 regulation, and a declining EU27 competitive environment may put the value this industry generates at risk. In this study, we estimate the economic contribution of EUCOPE’s membership and trade implications following U.S. policy measures.
We find that in 2024, EUCOPE members supported a GDP of EUR 98 billion, with productivity levels (GDP per employee) higher than most EU27 industries, reflecting the industry’s innovation intensity and reliance on highly skilled labour. We also find that EUCOPE’s members supported 678,000 jobs across direct, indirect, and induced effects, demonstrating the membership’s impact on both the life sciences sector and related industries.
Trade performance remains a key strength for the EU27 pharmaceutical industry, with the EU27 achieving a record pharmaceutical trade surplus of EUR 195 billion in 2024, driven by robust exports – particularly to the United States, which accounts for over a third of total EU27 pharmaceutical exports. However, recent U.S. policy measures, including a 15% import tariff and uncertainties around Most-Favoured Nation (MFN) pricing, have introduced new challenges. Survey evidence generated for this report suggests these policies may prompt companies to reconsider investment and launch strategies, potentially shifting activities away from the EU27 and putting some of the industry’s economic contribution at risk.
The study was commissioned by the European Confederation of Pharmaceutical Entrepreneurs (EUCOPE).
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