European pharmaceutical industry loses global leadership to US and China

The European Federation of Pharmaceutical Industries and Associations (EFPIA) released its ‘Pharmaceutical Industry in Figures 2026’ report, showing that while investment, production and exports in Europe continue to rise, the region is losing its leadership in new‑drug innovation.

In 2025 the sector invested about €60 billion in R&D, produced medicines worth €505 billion, exported €815 billion and employed roughly 955 000 people, marking double‑digit growth over the previous year. However, of the 104 new active substances launched worldwide in 2025, only 16 originated from European companies, compared with 46 from China or Hong Kong and 28 from the United States.

The report highlights a dramatic reversal from the early 1990s, when Europe contributed 37 % of new medicines. Investment growth has been far faster in the United States (14‑fold since 1990) and especially China (58‑fold since 2000), eroding Europe’s share of the global biotech ecosystem. Market share reflects this shift, with the United States and Canada capturing 54.7 % of global drug sales in 2025, while Europe’s share fell to 23.7 %.