Global pharmaceutical companies are entering 2026 facing an escalating dispute over drug pricing in Europe. After agreeing to lower prescription prices in the United States under pressure from President Donald Trump in late 2025, manufacturers are seeking to recover revenues by pushing for higher prices in European markets. – Reuters (8 Jan 2026)
Industry leaders argue that Europe has long “free-ridden” on US-funded innovation, a stance likely to dominate discussions at the JP Morgan Healthcare Conference.
A recent US–UK agreement, in which Britain secured tariff relief in exchange for paying 25% more for new US medicines, has set a potential precedent for other European countries seeking early access to new therapies. Analysts warn that tougher price negotiations could delay or prevent European drug launches, worsening existing access gaps. While Americans can access about 80% of innovative medicines launched in the past decade, Europeans access less than half. Despite diplomatic tensions and political resistance to higher spending, investors remain cautiously optimistic as the pricing battle intensifies.