A recent report from GlobalData highlights a significant widening of the biomanufacturing gap between the US and the EU, with European facilities increasingly favored for drug manufacturing contracts.
The analysis indicates that over 50% of new drugs in 2025 were associated with European manufacturing sites, a notable increase from just 25% in 2023. In contrast, the US's share of newly approved drug contracts has stagnated at approximately 18% since 2024. This trend reflects a strategic shift in the biopharmaceutical industry towards European outsourcing facilities, as noted by pharmaceutical analyst Katia Djebbar.
Europe's competitive edge is partly attributed to favorable tax incentives, such as Ireland's R&D tax credit increase to 35% and Germany's similar offerings ranging from 25% to 35%. These incentives contrast sharply with the US's lower Alternative Simplified Credit of 6% to 14%, making Europe more attractive for biomanufacturing.
While the US government is attempting to reverse this trend through policies aimed at encouraging domestic manufacturing, such as potential tariffs, Europe continues to expand its biomanufacturing capabilities, exemplified by Lithuania's tax-free biotech partnerships and the establishment of large facilities by companies like WuXi Biologics in Ireland. This evolving landscape suggests that the US may need to implement more aggressive strategies to regain its footing in the global biomanufacturing arena.