In this episode of SCW for Pharma, Evren Ozkaya welcomes Adrian Van den Hoven, Director General of Medicines for Europe, the leading voice for generic and biosimilar manufacturers across the continent.
The conversation begins by underscoring the essential role generics and biosimilars play in Europe’s healthcare system — making up around 90% of prescriptions but only 20% of total costs. Adrian explains how these medicines significantly expand access while easing the burden on patients and insurers. However, despite their public health value, low profit margins have led to a fragile and highly consolidated market — one responsible for two-thirds of medicine shortages across Europe, a trend also seen in the U.S.
Evren and Adrian explore how geopolitical tensions, supply chain disruptions, and stringent environmental regulations are putting additional pressure on the sector. While EU authorities are assessing ways to strengthen local supply, current pricing models offer little incentive for generic manufacturers to invest in capacity or modernization. Today, 70% of manufacturing investment goes toward maintaining compliance, leaving only 30% for productivity, agility, or innovation — eroding Europe’s competitiveness against countries like China and India.
Digital transformation surfaces as a crucial lever — not just to improve efficiency but also to combat labor shortages and build greater resilience. Yet Adrian notes that digital maturity in EU pharma remains low, with many factories still running on paper and Excel. Still, the opportunity is enormous. As Evren highlights, PwC estimates that AI could potentially double EBITDA for pharma, especially through manufacturing and supply chain use cases. But he also cautions that most companies aren't ready to harness AI due to weak data infrastructure. Without high-quality, real-time operational data, AI delivers poor results — “garbage in, garbage out.”
The episode concludes with a look ahead. Adrian stresses that Europe has the skilled workforce to lead in digital transformation, but regulatory support and targeted funding are essential. Strategic partnerships — like the one between SCW.AI and Medicines for Europe — can help bridge the gap. Evren and Adrian close by previewing their upcoming meeting in Brussels with the European Commission, generic pharma manufacturers, and technology providers — a collaborative push to showcase ROI, align stakeholders, and accelerate digital transformation across the industry.