PARIS, February 8, 2024 — A major shakeup is underway in the French pharmaceutical industry as several leading companies—Sanofi, Servier, Ipsen, LFB, Pierre Fabre, and Théa—have announced their departure from the employers’ union, Leem, to form a new, more “agile” organization. This move signals growing discontent among major players regarding industry representation and access to markets.
A New Union to Champion French Innovation
The six companies aim to create a more effective voice for French pharmaceutical innovation and health sovereignty.
- Sanofi, Servier, Ipsen, LFB, Pierre Fabre, and Théa are leaving Leem.
- The companies seek a more “agile” approach to engaging with authorities.
- A key concern is the availability of approved drugs in France.
- The new union will prioritize French industrial establishment in public policies.
The largest French laboratories, including members of the G5 Santé think tank, jointly announced on Thursday their decision to initiate the creation of a new professional union for the pharmaceutical industry in France. The companies intend to engage in “a constructive dialogue with the French and European authorities” to promote “French innovation and health sovereignty,” particularly as they derive a significant portion of their revenue from international markets.
What’s driving this split? Nearly “40% of drugs approved in recent years in Europe are not available in France,” highlighting issues of access to treatments and industrial competitiveness, the companies stated. This comes amid growing concerns about the rise of China and the American strategy of combining price pressure with investment capture.
Risk of a Pharmaceutical Exodus
The new organization will welcome other pharmaceutical companies with innovative medicines, provided they have at least one industrial production site and/or research and development (R&D) activities in France, and support the consideration of French industrial establishment in public policies. The move follows warnings from the industry during debates this fall on the draft Social Security budget, where concerns were raised about heavy taxation and price reductions impacting drug development.
Several laboratories interviewed by AFP indicated that the objective of a “tighter” structure is to gain “agility” and increased influence with the authorities. This suggests a desire for more responsive and effective advocacy compared to the existing framework.
Thierry Hulot, president of Leem and also president of the Merck group in France, expressed regret over the initiative, stating it risked “not helping patients” at a time when “medication has become a geopolitical issue.” He acknowledged that Leem, representing nearly 280 companies ranging from SMEs to multinationals, “is still in the process of finding consensus or synthesis,” adding, “after these few departures, the only representative union of this industry, which represents 80,000 employees, approximately 260 factories, will always have approximately 260-270 members.”
The departing companies believe a more streamlined structure will allow them to better advocate for the interests of the French pharmaceutical industry in a rapidly changing global landscape.
