The head of Darmstadt-based pharmaceutical and technology group Merck, Belén Garijo, is worried about Europe as a location in global competition. "Europe is falling behind somewhat compared to other regions when it comes to demanding innovations," she told the Handelsblatt newspaper (Tuesday). Government bureaucracy is increasingly hindering innovation, she added. "We are working in a highly regulated environment in Europe, where regulations are not always consistent with each other, and sometimes even contradict each other," Garijo said. "The question for companies is whether it's worth the effort." But Merck is sticking to its plan to invest about €1.5 billion in its Darmstadt headquarters by 2025, he said.
"Two things are crucial for Europe's competitiveness: the protection of intellectual property, i.e. patent terms for drugs. And the ability to quickly approve drugs and bring them to market," the Merck CEO continued.
Most recently, the DAX-listed Bayer Group announced that it would focus more on the U.S. and China in its pharmaceuticals business, describing the environment in Europe as "innovation-unfriendly." In Germany, the pharmaceutical industry is up in arms against a law to stabilize the finances of health insurance companies, which forces pharmaceutical companies to offer increased price discounts. The Swiss company Roche had filed a constitutional complaint against it. The reform is a risk, Garijo said. "Germany must not lose competitiveness when it comes to commercializing innovations."
Meanwhile, Garijo again defended Merck's involvement in China. "We continue to believe in the opportunities in China," she said. Garijo rejected calls for Western companies to disengage from China because of geopolitical risks. "I don't think disengagement is feasible in the next two decades."
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.