Bayer has warned that Europeans will face higher medicine costs if the region wants to remain a viable market for pharmaceutical innovation. Stefan Oelrich, head of Bayer’s pharmaceuticals division, stated that the U.S.-dominated pricing model—where American patients subsidize global drug R&D—is unsustainable. He argued Europe must gradually adopt higher price levels to match the U.S., or risk falling behind in accessing cutting-edge treatments.

This follows Bayer’s strategic shift toward the U.S. market amid patent expirations and a focus on growth areas like prostate cancer drug Nubeqa and heart disease treatment Kerendia. The company expects the U.S. to become its largest market, with pharmaceutical sales there rising over 10% annually. Oelrich emphasized that Europe’s complex reimbursement systems and delayed patient access threaten its competitiveness, as rivals like Pfizer and Novartis also warn about regulatory pressures. Meanwhile, U.S. President Donald Trump has criticized the price gap, pushing for lower drug costs aligned with other wealthy nations.

Bayer’s pharma division, which contributes nearly 40% of its revenue, faces near-term margin pressures as it funds new drug launches. A potential $7.25bn settlement over Roundup cancer lawsuits has bolstered its stock, which rose 5% this year. European public healthcare systems, already strained financially, may struggle to adapt to higher prices without regulatory reforms.