Europe’s position as a global leader in pharmaceutical innovation is under growing pressure, according to Italy’s Health Minister, Orazio Schillaci, who has warned that the continent risks falling behind the United States and China in the race to develop new medicines.

Speaking at the 2026 assembly of Farmindustria, Italy’s pharmaceutical industry association, Schillaci said that only 11% of new pharmaceutical molecules are currently being developed in Europe, compared with 70% originating from the United States and China.

The minister argued that Europe’s declining innovative capacity is being driven by a combination of underinvestment, fragmented markets, excessive bureaucracy and difficulties in attracting venture capital and effective public-private partnerships. Unless these challenges are addressed, he warned, Europe risks becoming primarily a manufacturing base rather than a centre for pharmaceutical innovation.

Schillaci also called for faster access to innovative medicines, highlighting the need to reduce the time between approval by the European Medicines Agency (EMA) and the availability of treatments for patients. He said Italy’s pharmaceutical policy should focus on creating a fairer and more predictable payback system while ensuring that innovation reaches patients more quickly.

The minister expressed concern about the potential impact of the proposed “Most Favoured Nation” pricing approach, warning that it could increase costs for European healthcare systems, discourage investment and slow the development of research infrastructure. Such effects, he said, could ultimately delay patient access to new therapies.

Looking ahead, Schillaci said these issues would be addressed in Italy’s forthcoming pharmaceutical delegation law, expected later this year. He called for a more modern approach to innovation governance, including broader use of Health Technology Assessment (HTA) to evaluate medicines according to their therapeutic value, as well as stronger use of real-world evidence through collaboration between the Italian Medicines Agency (AIFA) and regional authorities.

He also pointed to the potential of Managed Entry Agreements, which link reimbursement to clinical outcomes and could help balance patient access with healthcare sustainability.

The remarks come as European policymakers and industry leaders intensify efforts to strengthen the continent’s competitiveness in life sciences, clinical research and biopharmaceutical innovation amid growing competition from both the United States and China.

Photo: Orazio Schillaci, Italy’s Health Minister

25.06.2026.