The CEO of Boehringer Ingelheim

‘We manufacture medicines in Italia, but they reach Chinese patients first’

The report by the German giant highlights the delays in accessing treatment: on average, over 400 days in Italia following European approval, compared with 56 in Germany

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4' min read

Translated by AI
Versione italiana

4' min read

Translated by AI
Versione italiana

‘Twenty-five years ago, one in two new medicines was developed in Europe, whereas today that figure has fallen to around one in five. Here in Europe, over the last decade, the proportion of industry-sponsored clinical trials has fallen from 22 per cent to 12 per cent, whilst China has seen its share rise from 8 per cent to 29 per cent.” So says Shashank Deshpande, CEO of Boehringer Ingelheim, a multinational biopharmaceutical company active in human and animal health with around 54,300 employees in over 130 markets and a turnover of 27.8 billion euros. But beyond the figures lies a systemic view that highlights Europe’s difficulties in keeping pace within a broader global landscape. “Europe’s mistake has been to view health, innovation, affordability and competitiveness as separate objectives, rather than recognising them as part of a single system,” says Deshpande.

What is the critical issue?

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For Europe, this is linked to the speed of access: on average, European patients receive innovative medicines five months later than their US counterparts. The approval of new medicines is delayed by around 146 days and, whilst fast-track approval routes are becoming increasingly common in other parts of the world, such procedures are becoming increasingly rare in Europe.

Where did the Old Continent go wrong?

We have exceptional talent and a solid industrial base. The challenge is to translate scientific excellence into clinical research, investment and access for patients with sufficient speed. There is a striking paradox: a medicine developed with the contribution of Italian research and manufactured in Italia reaches a Chinese patient before it reaches an Italian patient.

How can we catch up with the US and China?

For many years, the political debate has focused mainly on cost containment, whilst others have invested in creating more favourable conditions for research, clinical development and innovation.

The United States is exerting increasing competitive pressure to attract investment.

Today, they represent our largest single market and remain a region of great importance to us. But Europe remains a very strong market. Between 2020 and 2025, we invested over 30 billion euros globally in research and development, of which more than 12 billion was in Germany alone. In Europe, we employ around 58 per cent of our global workforce, whilst the region accounts for around 38 per cent of our net sales.

Could Trump’s MFN (Most Favoured Nation) policy change the geography of new drug launches?

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Innovative medicines require substantial initial investment – often spread over a period of seven to ten years or more, from the initial scientific discovery through to clinical development – with no guarantee of success. Recouping these investments is what enables companies to fund the next generation of medical advances. This is why predictable and innovation-friendly regulatory frameworks are essential.

But is there a real risk that companies might give Europe lower priority?

This is a risk that must be taken seriously, but it is important to distinguish between two different factors. When prices in Europe are set at low levels and subsequently used as an international benchmark, this can reduce the incentive to launch innovative medicines here, as pricing decisions in one market increasingly influence commercial viability in other markets.

How can we break this deadlock?

We must ensure a predictable pricing environment that is conducive to innovation, whilst at the same time speeding up regulatory processes and access procedures.

How do you see Italia in this scenario?

Our presence in Italia is strong, and we have no intention of changing that: we have been operating here for 54 years with over 1,100 employees, and our production sites are a testament to our long-term commitment. Italia has numerous strengths: scientific expertise, a solid industrial base and manufacturing excellence. It is a fundamental part of the European life sciences ecosystem. At the same time, innovation only creates value when patients can benefit from it.

What is the role of the Fornovo plant?

Fornovo generated over 262 million euros in exports and was able to expand thanks to significant investments totalling around 190 million euros. However, its strategic importance lies first and foremost in the production of active pharmaceutical ingredients, which strengthens manufacturing resilience at both local and European level, given that Italia and Europe rely on China and India for over 80 per cent of the critical raw materials needed to manufacture medicines.

He was recently in Italia to meet with representatives of the government and various institutions.

I very much welcome the fact that the Italian government recognises the importance of a holistic approach to health and of implementing a strategy for the life sciences. I am confident that Italia will succeed in reshaping its governance framework, eliminating mechanisms that are detrimental not only to the pharmaceutical sector but, above all, to patients. Through responsible dialogue between the public and private sectors, bold decisions can be taken.

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