LEEM fears end of "cycle of progress" for France's pharmaceutical industry

From growth levels close to 5% in 2005, the French drug industry association (LEEM) reports a sharp downturn since the new year. Les Echos, the French business newspaper described it as a "brutal slowdown." In a statement to coincide with the presentation of the LEEM's economic analysis of the pharmaceutical sector in 2005, the association warns that, "after a cycle of progress that has made of France a great pharmaceutical nation, let us not enter into a cycle of regression, which would reduce the overall contribution of this sector to the French economy."

Over 20% of all French R&D jobs in pharma

On the positive side, LEEM president Christian Lajoux highlighted the top position in terms of R&D in France of the drug industry, with about 4.0 billion euros ($5.12 billion). R&D employs 22,000 in the pharmaceutical sector, out of 100,000 in all industries. Mr Lajoux also noted that the sector has seen job expansion, especially in highly-skilled positions. The contribution to the French economy is significant: 2.2% of Gross Domestic Product, a growing share of exports at 16.7 billion euros, 40% of France's total and the fifth most significant source of foreign revenue. France is the top-ranked European drug producer with 33.1 billion euros turnover in 2005.