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 affect patient care, global supply chains, and the sector's footprint in Europe should tariffs ultimately 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, while also improving market conditions and ensuring patients have timely access to new medicines.