Global drugmakers are likely to face a difficult year in Europe as they seek higher prices for prescription medicines, following agreements last year to cut US drug prices under pressure from former President Donald Trump. Industry experts warn that tougher negotiations in Europe could delay the launch of new treatments, potentially restricting patient access.
The issue is expected to feature prominently at the JP Morgan Healthcare Conference in San Francisco starting January 12, which draws pharmaceutical executives and investors from across the globe.
Trump promoted the agreements throughout late 2025, highlighting commitments from companies such as Pfizer, Eli Lilly, and AstraZeneca to align US launch prices for new medicines more closely with what other developed nations pay. The former president argued that wealthier countries should bear a larger share of drug costs, allowing US prices to be reduced.
The US and UK also reached a deal in which Britain agreed to raise net prices for new US medicines by 25% in exchange for tariff relief.
Sebastian Guth, chief operating officer of Bayer’s pharmaceutical business and a board member of US industry lobby group PhRMA, said European leaders may be open to revisiting pricing policies to secure earlier access to new medicines. “If you look at innovative medicines approved over the past 10 years, Americans have access to 80% of those while Europeans have access to less than 50%,” Guth said. “There’s structurally a very significant delay in Europe.”
European countries typically pay about a third less than the US because national health systems negotiate prices with drugmakers and sometimes delay purchases to obtain lower rates. Marshall Gordon, senior healthcare analyst at ClearBridge Investments, said it may take time for the pressure from US deals to translate into higher European prices. “You can’t force the Europeans to just all of a sudden spend more,” he said, “but the deals do give companies negotiating power.”
Last year, 14 major pharmaceutical companies struck agreements with the Trump administration to reduce prices for certain Medicaid drugs and cash-paying patients, while linking US launch prices for new medicines to prices in other wealthy nations. In exchange, companies received a three-year exemption from Trump’s threat of tariffs.
Despite political pressure, US launch prices have largely held firm, with some new treatments exceeding expectations. J&J’s Inlexzo, a therapy for bladder cancer, launched in September at more than $1.5 million per treatment course. Investors have reacted positively, seeing limited impact from price cuts and the removal of tariff risks.
Some industry executives caution that companies may prioritize US launches and delay European releases. Gareth Powell, head of healthcare investment at Polar Capital, said such delays could last a couple of years, at least until the Trump administration’s influence wanes. A Washington lobbyist noted that European governments are unlikely to make major concessions given current tensions with the US, citing Trump’s controversial moves, including proposals around Greenland.
