2024-10-27 18:14:00
It took a pandemic to no longer silence a disease that we knew was serious: France no longer produces enough medicines, innovative specialties or essential molecules. The consequence of a crisis? Rather, recalls Etienne Vervaecke, director of Eurasanté in Loos, “ a deliberate move by the pharmaceutical industry to outsource significant parts of its production functions to subcontractors », established outside France and Europe. A movement which was combined with the flight of research and development staff to the United States. More precisely, 40% of medicines marketed in the European Union come from third countrieswhile 60% to 80% of active pharmaceutical ingredients are produced in China and India. And the Sanofi affair, which wants to cede control of its consumer health entity, Opella, which markets Doliprane, to an American fund, further highlights this problem.
Public support
As a result, in 20 years, the pharmaceutical industry went from 130,000 employees to 98,000according to figures from READwhich brings together pharmaceutical companies. So, in the aftermath of the health crisis, the State released the checkbook, and helped the tool to modernize and businesses to develop. France Relance and the France 2030 plan have led to the support of numerous projects. With in the region in 2021 aid for what was still called Carelide in Mouvaux (before its takeover by Aguettant and Delpharm) and which is the last producer of infusion bags, notably paracetamol as well as for Minakem in Beuvry-la- Forest. And in 2023, the extension of Interor to Calais (pharmaceutical intermediaries, particularly in intensive care anesthesia, cardiology and oncology) led to a new financial boost.
This aid, granted following Covid, the region was not the only one to benefit from it. But in a context of catching up with a lost industry, Hauts-de-France did not really offer the same picture. While France was losing jobs, “the region even experienced an opposite trend,” indicates Etienne Vervaecke. The last two major announcements of foreign investments in France, unveiled during the last Choose France summit at the Elysée, bear witness to this dynamic: 365 million released by the English company AstraZeneca in its Dunkirk factory, where it produces aerosols for the treatment of asthma and chronic obstructive pulmonary disease, but also a part of the 140 million that GSK will devote to its production facilities in France, particularly in Saint-Amand-les-Eaux.
Massive investments
It is precisely to GSK that we owe a lot in the growing importance of the northern pharmacy sector. At the origin of its presence in the region, there was a small company, Sterilio, with 70 employees, sold to this British giant GSK which made it one of the most imposing vaccine factories in its park. In fifteen years, the SME has transformed into a unit of more than 1000 employees. Enough to increase the statistics of the sector in Hauts-de-France: 32,000 employees for health-nutrition activities including more than 11,200 employees for the pharma-biotech industry. There are other good examples in this area: when the LFB, a laboratory specializing in plasma fractionation to make drugs for immunology and coagulation, already present in Lille, decided a dozen years ago to To increase its capacity, it created its factory in Arras, with 600 jobs at once. So many bricks which constitute a strong industry with big names like Merck in Calais which are added to other references in the sector.
An industrial region, in the broad sense, the territory is also rich in sectors deriving from chemistry or the agri-food industry, connected to pharmacy. The development of one affects the other and vice versa. Fine chemistry applied to pharmacy has some great flagships in our territory and this makes it unique. Thus, Minakem employs more than 500 people in Beuvry-la-Forêt and Dunkirk. “ Ten years ago it was three times less » depicts the director of Eurasanté. And beyond the synthesis of active ingredients, the sector has manufacturers in the region, who implement the molecules, such as Delpharm in Lys-lez-Lannoy, Baxter in Fretin, Athena Inpharmasci in Prouvy, etc.
And among the finest representatives of those who add their stone to the production of drugs, not in its active molecule but in what leads to the good absorption of the treatment, there is the one who has become the world leader in excipients, Roquette. Giant of starch and other plant products that we find in a good part of our food, has placed at the top of its activities that linked to pharmacy, developed internally and through large acquisitions. “ We also have companies whose unique know-how is matched only by their discretion. Like SIO at Saint Laurent Blangy, which uses oil extracts to make excipients for liquid pharmaceutical forms.. »
Do better
The region, like the pharmaceutical industry across the country, certainly has holes in its racket (for example in the biohealth segment, with treatments derived from living organisms and not from chemistry). But it is benefiting from the movement started in the early 1990s. At the time, the search for a pharmaceutical laboratory was 80% done internally and 20% externally. “ Today, it is 30% internal and 70% external. We must see the symbiotic relationship between small companies which take risks and develop drugs designed often within academic laboratories and move towards preclinical and then clinical validation.. » Treatments which then arrive in the hands of the pharmaceutical giants who distribute them worldwide. One of the good regional examples is the partnership between Genfit and Ipsen laboratory. This treatment for severe liver conditions (which has just been approved by the FDA, the American drug authority) has seen its commercial rights taken by Ipsen, which gives Genfit several years of visibility to develop other drugs .
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**Interview with Étienne Vervaecke, Director of Eurasanté**
**Interviewer:** Étienne, thank you for joining us today. Your insights on the pharmaceutical industry in France are crucial, especially given the recent developments. Can you elaborate on the shift towards outsourcing in pharmaceutical production?
**Étienne Vervaecke:** Thank you for having me. Yes, the outsourcing of production has been a significant trend over the past two decades. Many pharmaceutical companies have chosen to relocate production functions to subcontractors outside France and Europe. This decision, coupled with the migration of research and development talent towards the United States, has major implications for our local industries. Interestingly, 40% of medicines available in the EU now come from third countries, while a staggering 60-80% of active pharmaceutical ingredients are sourced from China and India.
**Interviewer:** That’s alarming. How has this outsourcing affected employment in the French pharmaceutical sector?
**Étienne Vervaecke:** It’s certainly concerning. In the last twenty years, we’ve seen a reduction in jobs in the pharmaceutical industry, with employment dropping from 130,000 to 98,000. However, in the Hauts-de-France region, which includes some of our notable pharmaceutical companies, we’ve actually witnessed a growth in employment. This is partly due to strategic investments from companies like GSK and AstraZeneca in local facilities, cycling back into the economy.
**Interviewer:** You mentioned recent investments—how significant are these for the future of the industry in the region?
**Étienne Vervaecke:** These investments are crucial. For instance, AstraZeneca has announced a significant investment of 365 million euros in its Dunkirk facility. Similarly, GSK is expanding its production in Saint-Amand-les-Eaux with an additional 140 million euros. These kinds of investments help bolster our local industry, create jobs, and ensure a more resilient supply chain for pharmaceuticals within France.
**Interviewer:** What role did government support play in revitalizing the sector post-pandemic?
**Étienne Vervaecke:** The government response has been proactive. Following the pandemic, initiatives like France Relance and the France 2030 plan provide financial support to modernize and develop our pharma manufacturing capabilities. This approach not only aims to recover lost industries but fosters a more sustainable ecosystem for health and nutrition in the region.
**Interviewer:** Lastly, with the Sanofi affair and plans to cede control of its consumer health entity, do you believe this indicates a looming crisis in local production?
**Étienne Vervaecke:** It does raise valid concerns. The shift to American investment through outsourcing can lead to less control over essential medicines within France. It underscores the need for us to strategize to protect our domestic pharmaceutical capabilities. We must strike a balance between collaboration and maintaining our production autonomy to ensure the well-being of our citizens.
**Interviewer:** Thank you, Étienne. Your insights are invaluable as we navigate the evolving landscape of the pharmaceutical industry in France.
**Étienne Vervaecke:** Thank you for shining a light on these important issues.
France. It’s an exciting time for the pharma sector in Hauts-de-France, and it showcases the potential for local innovation and production, especially after the disruptions caused by the pandemic.
**Interviewer:** Given the reliance on global suppliers, how can France enhance its pharmaceutical self-sufficiency moving forward?
**Étienne Vervaecke:** To enhance self-sufficiency, we must focus on strengthening our local manufacturing capabilities and research initiatives. There’s a growing movement towards reshoring, where companies are reconsidering their offshore strategies. The government’s support initiatives, such as France Relance and the France 2030 plan, can play a vital role in modernizing our production facilities. By fostering collaboration between small biotech firms and larger pharmaceutical companies, we can drive innovation while also ensuring more secure drug supplies.
**Interviewer:** Are there specific programs or partnerships currently in development that exemplify this collaboration?
**Étienne Vervaecke:** Absolutely. A prime example is the partnership between Genfit and Ipsen, which recently received FDA approval for their liver disease treatment. This collaboration allows Genfit to focus on developing new therapies while leveraging Ipsen’s global distribution network. Such synergies are instrumental as they not only promote local advancements but also secure a place for our innovations on the world stage.
**Interviewer:** what do you see as the biggest challenge facing the pharmaceutical sector in the coming years?
**Étienne Vervaecke:** The biggest challenge will undoubtedly be maintaining a balance between cost-effectiveness and quality in pharmaceutical production. As we try to enhance local production capabilities, we must also ensure that the level of innovation and compliance with safety standards remains intact. It’s a delicate balance, but with the right investments and strategic planning, I believe we can succeed in revitalizing and securing the future of the pharma industry in France.
**Interviewer:** Thank you, Étienne, for sharing your expertise and insights with us today.
**Étienne Vervaecke:** Thank you for having me. It’s essential for us to continue this dialogue as we navigate the future of pharmaceutical production in France.
