While the EU-U.S. agreement brings a degree of certainty for EU-based companies, it is far from an optimal outcome for the sector. It remains to be seen how the 15% tariff cap on innovative medicines would impact patient care, global supply chains, and the sector's footprint in Europe should tariffs be applied.

If Europe wants a globally competitive pharmaceutical sector, it must continue to strengthen its entire ecosystem, from regulation and clinical research to manufacturing, as well as improving market conditions and ensuring patients get timely access to new medicines.