Nick Dearden, director of Global Justice Now, and Peter Maybarduk, Access to Medicines director at Public Citizen, both affiliated with the People’s Medicines Alliance, are raising alarms over the latest developments in pharmaceutical pricing and tariffs initiated by the U.S. administration.
This week, U.S. President Donald Trump issued an executive order, attributing the rising drug prices in America to foreign nations, raising concerns that pharmaceutical tariffs could soon follow. This situation has instigated anxiety among pharmaceutical workers in Ireland, with tens of thousands fearing job losses. Politicians within the EU and the U.K. are similarly worried about potential investment pullbacks from the industry, which could lead to increased prices and drug shortages, particularly affecting generic medicine availability in the U.S.
Big Pharma’s exploitation of tariffs
However, the fear being propagated seems to be strategically amplified by the pharmaceutical companies themselves. Major pharmaceutical corporations are adept at converting crises into opportunities to enhance their already considerable profits. They are now leveraging the current climate to push for the relaxation of regulations they find burdensome.
Under the guise of claiming that Europe is becoming less viable for investment and production, these drug manufacturers are making various demands, including more lenient regulations on clinical trials and stricter protections for their intellectual property rights. Most of these requests seem unrelated to improving the conditions for drug manufacturing in Europe; instead, they focus on inflating prices.
“Unless Europe delivers rapid, radical policy change, then pharmaceutical research, development and manufacturing is increasingly likely to be directed towards the US.”
With Trump’s support for the pharmaceutical sector evident, it’s likely he will advocate for their interests, further pressuring European governments to cave to these demands.
Reforming the pharmaceutical landscape
In the U.K., a parallel situation is unfolding, where pharmaceutical companies are urging the government to reform the framework that assists the National Health Service in managing medicine costs. The government has already initiated a review, granting these companies a platform to voice their concerns.
There is little surprise that Big Pharma is seizing this moment to push for easier price-gouging practices, especially given that it is one of the most lucrative industries globally. The argument that they require substantial returns to fund new medicine development, which is costly, is frequently made. Yet, even if the industry were handed unlimited funds, it’s unlikely that this would yield affordable medicines. Instead, pressing issues like antimicrobial resistance often remain neglected as companies strive to develop the next blockbuster drug beyond the financial reach of health services.
Big Pharma operates as a bully, taking advantage of every opportunity to maximize profits, often at the expense of public health. While it’s true that Trump’s tariffs could disrupt supply chains and impact generic medicine production—where profit margins are already thin—the European governments must view this as a crucial opportunity to overhaul their medicine manufacturing approaches.
Such reforms would require financial investment; however, the public already spends substantial amounts on medicines. It is vital to ensure that any investments lead to accessible treatments without incurring excessive costs.
To achieve this, Europe must collaborate to establish a robust, publicly controlled medical research framework. This would prevent the transfer of vital research and patient data to pharmaceutical conglomerates and instead promote a model of intellectual property that facilitates sharing and collaboration in research, aimed at developing better medicines for all.
Furthermore, enhancing manufacturing capacity is essential. While the public sector may not need to produce every medicine required, a more resilient domestic capacity is necessary in today’s unpredictable environment. This involves fostering a diverse array of private companies and improving public sector capabilities to prevent being at the mercy of pharmaceutical giants.
Additionally, as reductions in U.S. and European aid are predicted to adversely affect global healthcare, collaboration with developing nations is crucial to bolster their production capabilities. Too many countries have been deterred from addressing their healthcare challenges, and we should assist them with knowledge transfer, technology, and a revised intellectual property model.
Ultimately, a world where everyone has access to the medicines they require is possible. However, both Trump’s policies and the machinations of Big Pharma seem poised to drive us in the opposite direction. It’s time for a different approach.