Strengths and above all quite a few weaknesses. The results of the annual barometer of France’s attractiveness published on Tuesday June 18 by Leem, the professional organization which represents pharmaceutical companies, provide a bleak picture of the sector. Despite efforts, France is still far from regaining its place as European champion.
The positives first. On the investment side, research and development spending in the pharmaceutical sector in France remains at a high level. In 2023, they were growing slightly according to the study, reaching 5.9 billion euros. This upward trend is also observed in production investments. Their amount reached just over 2 billion euros last year, more than half of which concerned investments in new production capacities.
This observation, however, is not enough to compensate for the delay accumulated over two decades, particularly in industrial facilities. A figure from the barometer particularly illustrates the situation: only 9.4% of innovative medicines authorized by the European Medicines Agency since 2017 have at least one manufacturing site located in France, compared to 24% in Germany.
“Broken dynamics”
In other words, France is struggling to attract the production of new drugs on its soil. In recent years, the government has worked to reindustrialize the country to reduce the gap. Attracting new factories, however, takes time. “We have primed the pump again, but it will be a few more years before it becomes a geyser. Above all, in the weeks and months to come, this dynamic should not be broken”observes Thierry Hulot, president of Leem.
In the meantime, the sector’s trade balance is plummeting. It fell to 383 million euros in 2023, compared to an average of 3.7 billion euros between 2014 and 2022. Because if France produces few innovative treatments, it must still import them to treat its patients. Beyond the dependence that this creates in terms of supply, these purchases of patented products are expensive, and the exports of medicines manufactured in France, which often concern mature products sold at low prices, compensate less and less. less. Result: the pharmaceutical industry, traditionally in surplus, could fall into the red for the first time in 2024, warns Mr. Hulot.
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