In recent years, conversations around nearshoring in the European biopharma sector have gained momentum. Triggered by supply chain disruptions during COVID-19, geopolitical tensions, and rising concerns over critical medicine shortages, many hoped Europe would begin bringing manufacturing back closer to home.

There’s some evidence this is happening — especially for innovative and complex therapies like mRNA vaccines, cell and gene therapies, and novel biologics. These products often demand technical expertise, strict quality controls, and faster delivery timelines, making Europe an attractive manufacturing base.

But experts warn: full-scale nearshoring remains limited and may be more of a political aspiration than a market reality.

For generic and cost-sensitive medicines, Asian CDMOs still dominate, driven by low labour costs and established capacity. Bringing this production back to Europe remains financially challenging — unless supported by policy.

Policymakers are responding. The EU Biotech Act, Critical Medicines Act, and EUFAB initiative aim to improve autonomy and prepare for future emergencies by reserving production capacity. Germany’s ALBVVG law even allows certain price increases to ease pressure on generic manufacturers.

However, not everything can be nearshored. Some raw materials and radiopharmaceutical inputs can only be sourced in Asia or Russia. Clinical trials, too, must remain global — especially when medicines are intended for diverse populations.

Meanwhile, automation and AI are often seen as the key to restoring Europe’s competitiveness. But most European manufacturing plants still rely on manual processes. Adopting new technologies requires massive infrastructure overhauls — and Europe may be lagging behind in innovation compared to Asia’s AI giants.

Ultimately, Europe is taking steps toward greater strategic autonomy, especially for critical and innovative therapies. But global supply chains still matter — and so does economic realism.

Nearshoring may be part of the future. But it’s not the full solution.

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