Trade policies under the Trump administration pose a potential threat to the pharmaceutical industry, cautions industry analyst Maggie Pagano, as per the warnings given by CEO Pascal Soriot.
Warning: AstraZeneca's CEO Sir Pascal Soriot raises concerns over Europe's falling behind in healthcare innovation and manufacturing investments, risking the continent lagging behind the US and China, costing jobs, and lives.
In a timely warning, AstraZeneca, Britain's largest company by value and a world-leading pharmaceutical conglomerate, of the potential issues at hand, raises concerns about sluggish Europe facing further upheaval from potential US tariffs and lower growth.
Soriot, known for his outspokenness, joins the ranks of fellow pharmaceutical CEOs from Novartis and Sanofi in expressing worry about European price controls on medicines, which not only hinder innovation but deter investors.
Even the European Federation of Pharmaceutical Industries and Associations expresses concern, calling for urgent reforms to avoid companies relocating to the US.
While Soriot is less critical about US President Donald Trump's proposed tariffs, he is straightforward in stating that trade levies aren't the optimal approach for managing the pharmaceutical sector.
Despite his cautions, the threats seem to be effective, as companies are following the money and the brainpower that is moving to the U.S. AstraZeneca, like rival Roche, has confirmed it will continue investing in the US amid threats of tariffs on pharmaceutical imports, with US sales expected to make up half their total sales in the foreseeable future.
EU Leaders in the Spotlight
However, Soriot's criticisms of European leaders take center stage, demanding increased investment in medicines to safeguard Europe's health sovereignty. The key question is whether European leaders will listen and act upon these warnings.
Endless reports commissioning competition and innovation are produced without significant progress. If Europe hopes to compete globally, action must be taken promptly.
As hedge fund manager Kyle Bass bluntly put it, "Europe is an anti-growth, anti-capitalist, pro-tax, super-regulatory, loose collection of broken economies." Yet, Bass does acknowledge the Nordic countries and Poland as exceptions to this harsh critique.
Could the threat of US tariffs and job losses finally stir the EU into action? The same effect that Trump's security threats had on the increase of military spending among NATO allies might be felt in the healthcare sector.
Green Renaissance?
In other news, activist US fund manager Elliott has claimed its first green scalp at BP. Giulia Chierchia, head of strategy and sustainability, is leaving after BP's decision to slash renewables and refocus on fossil fuels. Her resignation comes following pressure from Elliott for more proof of BP's commitment to cost-cutting and reducing spending. But despite the shares dropping by a fifth since the reversal, investors should remain patient, as turning a supertanker around takes time.
Insider Trading
If Reform wins in Runcorn tomorrow, Labour leader Sir Keir Starmer may dismiss Ed Miliband due to disagreements within the Cabinet about energy strategy. Rachel Reeves is rumored to want to revive oil and gas licences in the North Sea and weaken the country's commitment to Net Zero. If so, this would be her first constructive idea.
The Best Investing Platforms
Here are some top DIY investing platforms for the UK:
- AJ Bell
- Hargreaves Lansdown
- interactive investor
- InvestEngine
- Trading 212
Affiliate links: If you take out a product, This is Money may earn a commission. These deals are selected by our editorial team, as they believe they are worth highlighting. This does not affect our editorial independence.
Find the best investing account for you
- Sir Pascal Soriot, AstraZeneca's CEO, scathingly criticizes European leaders for sluggish investments in healthcare, risking the continent's competitiveness against the US and China.
- European leaders are under the spotlight, as Soriot demands increased funding for medicine production to safeguard Europe's health sovereignty, with the question being whether they will act upon these warnings.
- In the technology sector, US fund manager Elliott has pressured BP to commit to cost-cutting and reducing spending on renewable energy, leading to the resignation of Giulia Chierchia, head of strategy and sustainability.
- In the finance and business world, companies are moving investments to the US amid potential US tariffs and lower growth in Europe, with AstraZeneca announcing continued investments in the US.
- If Reform wins in Runcorn, rumors suggest Labour leader Sir Keir Starmer may dismiss Ed Miliband due to disagreements within the Cabinet about energy strategy, with Rachel Reeves pushing for oil and gas licences in the North Sea and weakening the country's commitment to Net Zero.
