Page 171 - CW E-Magazine (13-5-2025)

Special Report Special Report

Tariffs, strategies & biotech: Where do things need at least 12 months to fi nd alter- grow global resilience and position- Establish a Biotech for Europe Initiative
native suppliers, and 44% said it would ing. We have called on the [European] to support the acceleration of R&D
stand? require more than two years. Commission to accelerate the positive and development of biotech and bio-
work already underway for biotech manufacturing through direct fi nancing
iotech industry groups, Biotech- Another set of tariffs, separate and PATRICIA VAN ARNUM “This survey demonstrates the through the Biotech Communication (loans and grants) for development and/
nology Innovation Organization specifi c to the pharmaceutical indus- Editorial Director, (DCAT) far reaching and potentially damag- of 2024, with regulatory streamlining, or scale-up programs in the EU.
B(US) and EuropaBio (Europe), try, are also under evaluation. In April ing impacts of the proposed tariffs on and the EU Biotech Act. This ambition
weigh in on evolving US trade policy 2025, the US Department of Commerce Throughout this process, the bio- our biotechnology industry, on biome- should also be translated into related Improve EU fi nancial and capital
and how to strengthen the life-sciences initiated an investigation to determine technology industry, via BIO and dical research and on patients,” said initiatives including the Life Sciences markets for innovation. Take forward
industry’s competitiveness. the effects on US national security of EuropaBio, which represent both large BIO President and CEO, John F. Crow- Strategy, Pharma Package, and Bio- the measures announced in the Euro-
imports of pharmaceuticals and pharma- and small biotechnology and bio/ ley, in a March 26, 2025, statement. economy Strategy, to secure EU leader- pean Commission’s Communication
Weighing in on tariffs ceutical ingredients. The investigation pharmaceutical companies, have com- “We fully support strong policies and ship across value chains and industrial on a Savings and Investment Union
How tariffs will evolve in the US is was initiated under Section 232 of mented on the potential harmful impact programs that incentivize the manu- ecosystems.” (an initiative to improve the way the
very much a situation in fl ux, but two the Trade Expansion Act of 1962, as that tariffs would have on the industry. facture of medicines here in America. EU fi nancial system channels savings
industry associations representing the amended, which allows the President to On March 26, 2025, BIO released the Re-onshoring key parts of the biotech- EU’s Life Sciences Strategy to productive investments) to improve
biotechnology industry, the Biotechno- impose import restrictions based on an results of a survey of its members taken nology supply chain to the US and our The European Commission is pre- the competitiveness of EU fi nancial and
logy Innovation Organization (BIO) in investigation and affi rmative determi- in February 2025 that underscored the allies and strengthening the American paring a new Strategy for European capital markets for innovation-driven
the US and EuropaBio in Europe, have nation by the US Department of Com- global nature of the bio/pharmaceutical manufacturing base should be a high Life Sciences, to be adopted in 2025, industries.
both issued statements over the nega- merce that certain imports threaten to supply chain and the negative impact priority for both national and economic as a means to strengthen life-sciences
tive impact that tariffs could have. As impair US national security. In general, that tariffs would have, particularly on security. It will take years, though, for research and innovation in the EU and Patent reform. Accelerate the roll-
of April 24, 2025, the US government a Section 232 investigation considers imports from the European Union (EU). this shift, and we need to be mindful of invited public comment on the strategy, out of the Unified Patent System,
has imposed a baseline tariff of 10% the following (1) existing domestic Globally, according to the study, nearly the negative consequences of these pro- which ended on April 17, 2025. Both including creating a one-stop shop for
on all US imports and two additional production of the product; (2) future capa- 90% of US biotech companies rely on posed tariffs.” EuropaBio and the European Federa- patent protection and enforcement
sets of tariffs are under consideration: city needs; (3) manpower, raw mate- imported components for at least half tion of Pharmaceutical Industries and across the EU, and encourage all EU
(1) reciprocal taxes, which are imposed rials, production equipment, facilities, of their FDA-approved products. With EuropaBio, which represents bio- Associations (EFPIA), which repre- member states to ratify and implement
on a country-by-country basis; and (2) and other supplies needed to meet pro- respect to the EU specifi cally, the study tech and bio/pharmaceutical compa- sents innovator drug companies and the agreement.
specifi c pharmaceutical industry tariffs. jected national defence requirements; found that 94% of biotech fi rms anti- nies in Europe, weighed in on the tariff national pharmaceutical association in
(4) growth requirements, including the cipate higher manufacturing costs if situation on April 8, 2024, prior to the Europe, issued recommendations for EU R&D funding support. Support
The Trump Administration fi rst investment, exploration, and develop- tariffs are placed on imports from the 90-day pause on reciprocal taxes and the European Life Sciences Strategy to life sciences innovation by preserving
laid out a plan for imposing reciprocal ment to meet them; and (5) any other EU and that proposed tariffs on the the later action of the US government be considered by EU policymakers. “Framework Program 10” funding
tariffs in February 2025 as a means to relevant factors. For pharmaceuticals, EU would oblige 50% of companies to to initiate an evaluation of specifi c tariffs levels (the EU’s funding plan to
counter non-reciprocal trading arrange- the US Commerce Department provided potentially fi nd new research and manu- on the pharmaceutical industry. It EuropaBio’s recommendations support, research, science and innovation)
ments with its trading partners and as public notice in the Federal Register facturing partners. In addition, overall, called for an exemption of tariffs on A key point made by EuropaBio is and continue to support public-private
a way to improve US competitiveness, of its Section 232 investigation into half of those companies surveyed say bio/pharmaceuticals and a continuation that EU policy needs to better support partnerships.
including in manufacturing. Those reci- pharmaceuticals on April 16, 2025, and they would have to rework or poten- by EU policymakers to advance the product innovation and the transla-
procal taxes were scheduled to go into is requesting public comment by tially delay regulatory fi lings, and 80% competitiveness of the EU biotechno- tion of research into commercial pro- University funding support. Accele-
effect on April 9, 2025, but the Adminis- May 7, 2025. of biotech companies said they would logy industry through several strategic ducts through greater public spending rate academic discovery into industry
tration placed a 90-day pause (until policy and legislative proposals. in R&D, incentives for fi nancial and by earmarking additional EU funding
July 9, 2025) on their implementation capital markets as well as regulatory for universities with high-tech trans-
to enable countries to negotiate these “In this critical moment, EuropaBio reforms. With respect to fi nancial and fers/spin-offs and establish metrics to
tariffs with the US government. One actively supports the European Com- capital markets, EuropaBio is recom- measure impact of discovery of trans-
exception was China, which had issued mission, our company members and mending the following: lational research and incentivize higher
trade countermeasures in response to national biotech associations to en- technology readiness levels.
the pending reciprocal tariffs imposed hance EU ambition, competitiveness Biotech and Life Science Index.
on it. It is now subject to a 125% import and attractiveness for biotech innova- Establish a Biotech and Life Science On the regulatory front, EuropaBio
tariff announced by the White House on tors of all sizes,” said EuropaBio, in an Index allowing biotech companies to is recommending the following:
April 9, 2025, plus an additional 20% April 8, 2025, statement. “Specifi cally, raise capital, including in later stage
fentanyl-related tariff already imposed EuropaBio calls for an exemption for where signifi cant gaps exist, from EU AI and digital transformation.
in February and March (2025), effec- biopharmaceuticals and their manu- investors in high liquidity markets. Accelerate the digital transformation,
tively creating a 145% tariff rate on facturing inputs, plus strengthening including the use of AI, in priority areas
imports to the US from China. biotech value chains, to preserve and Biotech for Europe Initiative. such as green processes, product ap-

170 Chemical Weekly May 13, 2025 Chemical Weekly May 13, 2025 171

Contents Index to Advertisers Index to Products Advertised