BRUSSELS, Belgium: European pharmaceutical companies are pushing for higher drug prices across the EU, warning that current pricing policies are undermining investment in research and development and making the region less competitive.

The calls come amid growing concerns over U.S. trade policy and a surge of pharmaceutical investment announcements stateside.

AstraZeneca CEO Pascal Soriot urged the EU to treat healthcare innovation with the same urgency as defense, noting that the bloc's lower spending on innovative medicines compared to the U.S. puts its long-term health security at risk.

"Europe spends a substantially lower share of GDP on innovative medicines than the U.S. and, as a result, is falling behind in attracting R&D and manufacturing investments, putting its ability to protect the health of its own people at risk," Soriot said in a statement.

His remarks followed a letter published in the Financial Times by the CEOs of Novartis and Sanofi. The executives criticized EU price controls, arguing they stifle innovation and make Europe less attractive than the U.S. or China. They proposed a continent-wide list price for new medicines, linked to U.S. net prices and adjusted through rebates—marking a stronger stance than a previous April 11 letter signed by over 30 pharmaceutical CEOs, including those from Bayer, Eli Lilly, Novo Nordisk, and AstraZeneca.

That earlier letter, addressed to European Commission President Ursula von der Leyen, called for reforms to EU pricing policy but stopped short of suggesting specific benchmarks. The latest proposals reflect rising frustration within the industry, especially after von der Leyen's recent meeting with pharma executives. According to an industry source, Sanofi CEO Paul Hudson criticized European governments during the meeting for underpaying medical innovation.

The source said matching U.S. list prices is unlikely, but pegging European prices to U.S. net prices—those paid after discounts by insurers or pharmacy benefit managers—might be achievable.

In response, the European Commission said it recognizes the strategic importance of the pharma sector and wants to make Europe a more attractive market.

The debate comes as the U.S. considers tying domestic drug prices to those in other developed nations. Meanwhile, companies like Roche, Eli Lilly, and Novartis have pledged billions in new U.S. investments, underscoring the shift in global industry focus.