ING Economics: A prescription for power – China's biotech boom and the new global pharma order | 15 Jul 2026

1. Executive Briefing (TL;DR)

• The Core Thesis: The global pharmaceutical industry is experiencing a profound structural realignment driven by aggressive US trade policy, shifting profit paradigms, and a massive innovation surge out of China. As the US reinforces its status as the world's primary biopharma profit and research engine, Europe faces a multi-decade regulatory and investment decline, forcing it to choose between raising drug prices to sustain access or turning to an increasingly internationalized Chinese biotech sector for affordable, innovative therapies.
• Top Key Takeaways:
  • Global Capital Flight from Europe to the US: Driven by US policy changes and tariffs, global pharma boardrooms have announced over $500 billion in investment commitments targeting the US market, direct capital that is being pulled out of the European pharma economy [00:04:14].