Roche CEO warns Europe is losing its competitive edge

Roche CEO Thomas Schinecker has warned that Europe is at risk of falling behind in global innovation, stating that the continent is “clearly in the process of losing touch and falling behind.” Following the release of recent sales figures, Schinecker announced that the Swiss pharmaceutical giant will prioritize future investments in markets that actively reward innovation, specifically pointing to the USA and Asia.

Schinecker highlighted both innovation and structural competition issues, noting that political prioritization of future industries is insufficient without economic frameworks that make actual investments attractive. This stance follows Roche's decision to temporarily suspend future investments in Germany. The company cited frustration with German government cost-cutting measures, specifically mandates for higher manufacturer discounts intended to stabilize health insurance contributions.

Despite these challenges, Roche reported global sales of 46.5 billion Swiss francs for the first nine months of the year, a 1% increase nominally and a 6% increase at constant exchange rates. The company's pharmaceutical division saw a 2% rise in sales, driven by key products such as Xolair and Hemlibra. Roche continues to maintain a significant presence in Germany, employing over 18,000 people across locations including Mannheim, Ludwigsburg, and Penzberg.