Austerity Hits Europe’s Allure for Drugmakers, Novartis CEO Says

Europe is becoming a less attractive market for drugmakers, Novartis AG Chief Executive Officer Vas Narasimhan said, with austerity measures in the UK and other countries causing “great concern.”

European governments must take seriously the need to invest in the sector and prioritize health care, Narasimhan said during a conference call with reporters on Wednesday. While political leaders say they want to attract innovation, they don’t reward companies for the advances they deliver, he said, citing bureaucracy in the European Union.

“We have an ecosystem that’s not investing in innovation at the same level as other markets around the world,” ...