Rising operational costs, regulatory uncertainty, and supply chain disruptions are side effects of tariff policies that are now increasingly impacting the biotech sector.
While tariffs are not a direct driver of clinical trial localization decisions, the growing cost and logistical pressures are making Europe an increasingly attractive alternative for sponsors.
Why is Europe becoming more appealing? ⤵
First and foremost, it offers supply chain stability thanks to its integrated market and proximity to key manufacturing hubs, which helps reduce the risk of logistical disruptions. Additionally, Europe stands out for its cost efficiency — lower operational expenses and the competitiveness of its clinical trial sites make it a more financially attractive option for sponsors. A further advantage is the regulatory environment — the centralized marketing authorization process managed by the EMA allows for faster and more predictable access to multiple markets simultaneously.
Of course, decisions regarding the relocation of clinical trials remain multifaceted — factors such as demographics, disease prevalence, patient accessibility, and site capabilities continue to play a critical role.
Nonetheless, Europe is increasingly positioning itself as a safe and predictable environment for conducting clinical trials, particularly in times of global economic uncertainty.
Will this trend persist?
That will depend on how quickly global companies adapt their strategies to the new market realities.
