Comment
The branch surfs on the chaos of the American president to blackmail Europe. It’s the world upside down, and it’s annoying.
Pascal Michel / ch media
In popular language, we say that we have “too busy the boat”. At work, in the political world, we readily use this expression when you wanted to do it too much, accumulate everything. Until it starts to flow.
The boss of Novartis, Vas Narasimhan, is perhaps not familiar with this expression. What is clear is that it willingly pushes the plug a little far – to resume another popular expression -, and risks making mistakes that could well turn against him.
Vas narasimhan.Keystone
Recently, he claimed with APLOMB, via a letter published in the Financial Timesthat the European Union adapts the price of drugs to that of the United States, while these are three times higher there. Without such compensation that he deems “fair”, for so -called “innovative” drugs, Europe would lose its attractiveness, and could even make companies like his want to set up there. In his open letter, Vas Narasimhan and the boss of Sanofi, Paul Hudson, even threatened to go to the United States or China.
Tuesday in front of the media, Vas Narasimhan also said that Novartis could withdraw his investments on the old continent:
“Our footprint in Europe and Switzerland is considerable. The question of whether we will extend it in the future will depend on the framework conditions. ”
In the second Basel heavy goods vehicle, the tone is more diplomatic. But the boss of Roche, Thomas Schinecker, also said that in Europe had to focus on “the central industries of the future”, like the Pharma.
Such pressures are of course part of the business. Manufacturers are targeting high income thanks to their drugs, for which they invest significant capital for research for years. For their part, the States try to control the explosion of health costswhich makes negotiations on very hard prices in Europe.
But the situation is different in the United States because there is no price limit set for new drugs. This is one of the reasons why no other country devotes so much money per capita to its health system. And Europe should be closer to such a model? This is something very annoying, especially since even Donald Trump would like to lower these exorbitant prices and introduce pricing grids.
This aggressive lobbying of the Pharma leaves a bitter taste for another reason. The branch precisely instrumentalizes Trump’s customs chaos to put pressure on Europe and Switzerland, as a privileged place for pharmaceutical companies. At the same time, these groups shamelessly court the American president with astronomical amounts.
Roche and Novartis have promised Trump investments over $ 70 billion. They thus hope to coax him, and dissuade him from imposing customs duties on pharmaceutical products.
Big Pharma’s plans are oriented around two axes:
- First of allmost of these funds announced with major advertising reinforcements were already already planned for a long time. Skilledly, multinationals have now communicated them, in order to put a large figure under the nose of the Trump administration.
- Secondlysince the bosses of the pharmaceutical industry presented their plans to several billion, they arouse optimism, demonstrating that the American customs barriers are “manageable” for them. Novartis has even increased his forecasts concerning his turnover. It takes a certain cheek to demand in the wake of higher prices in Europe. Especially when there are margins that other sectors can only dream.
The old continent still has a lot to offer, especially Switzerland. Stability, the next generation, attractive tax conditions. Basel, the pharmaceutical city par excellence, is very aware that it is necessary to take care of the main Swiss export branch. It goes even far from Basel-Ville, left-wing politicians are also fighting for large groups.
But faced with the demonstration of the Pharma, Basel must ask itself, just like the government, when a constructive debate turns into blackmail. The Federal Council should in any case be at least as sure of him as the leaders of the group. It goes without saying that we can negotiate on everything, the prices of medicines, accelerated authorizations, taxation. But the two parties should keep in mind that the boat should not be loaded too much.
Translated from German Joel Espi
News in Switzerland is here
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