The pharmaceutical industry is a formidable lobbying force in both the UK and the EU, spending vast sums to influence policy decisions.

The scale of this spending is significant, but it's important to understand not only the raw numbers but also the mechanisms and locations of this activity.

The Scale of Spending in Brussels and Strasbourg

Brussels, as the de facto capital of the European Union, is the primary hub for pharmaceutical lobbying. While Strasbourg is the seat of the European Parliament, most lobbying activities are concentrated in Brussels, where the European Commission and the Council of the European Union are located.

• Financial Power: The pharmaceutical industry is one of the top lobbying spenders in the EU. According to various reports from organizations like Corporate Europe Observatory and Health Action International, the industry and its trade associations spend an estimated €40 million or more annually to influence decision-making. Some reports suggest that the true figure could be as high as €91 million per year, as many companies either under-report or do not register their lobbying expenses with the EU's Transparency Register, which is voluntary.

• Transparency and Under-reporting: The EU's Transparency Register, while a valuable tool, has been criticized for its reliance on self-reported and often bracketed figures, leading to concerns about under-reporting. Recent investigations have caught major corporations misreporting their lobbying expenditures, and while some were forced to update their numbers, there are no fines or criminal penalties for inaccurate reporting. This lack of robust enforcement means the publicly available figures are likely a conservative estimate of the total amount spent.

• Key Players: A significant portion of this spending is by major pharmaceutical companies like Bayer, Johnson & Johnson, and Pfizer, as well as their powerful European trade associations. The European Federation of Pharmaceutical Industries and Associations (EFPIA) is a central player, representing over 1,900 companies and national associations. Its lobbying efforts are a coordinated strategy to influence the EU's pharmaceutical legislation, intellectual property rights, and drug pricing.

• Targeted Influence: The lobbying in Brussels is highly targeted. The pharmaceutical industry engages in a wide range of activities beyond direct financial expenditure. This includes:

  • In-house lobbyists: Companies employ a large number of in-house lobbyists to maintain continuous contact with EU officials.

  • External consultancies: They also hire public affairs consultancies and law firms to provide expertise and access.

  • Meetings with officials: Data from the Transparency Register reveals a high frequency of meetings between pharmaceutical lobbyists and key European Commission officials, particularly those in the Directorate-General for Health and Food Safety (DG SANTE) and the European Medicines Agency (EMA). These meetings are crucial for shaping new legislation and regulatory frameworks.

  • Funding research and patient groups: The industry also funds research initiatives and patient advocacy organizations, which can then act as a third-party voice for industry positions, a tactic that provides a degree of separation and credibility.

The Scale of Spending in London

In the UK, the lobbying landscape is similar to the EU, with significant spending and a focus on key policy areas. While there is no single mandatory lobbying register that provides a comprehensive overview of all spending, a combination of public records, parliamentary reports, and industry publications reveals the scale of the activity.

• Financial Disclosures: The UK's Register of All-Party Parliamentary Groups (APPGs) provides some insight into corporate funding of cross-party groups of MPs and Lords. A 2021 study revealed that a significant amount of funding for health-related APPGs came from pharmaceutical companies and industry-funded patient organizations. This type of funding, which provides privileged access to policymakers, is a key part of the lobbying strategy.

• The Association of the British Pharmaceutical Industry (ABPI): The ABPI is the primary voice of the pharmaceutical industry in the UK. Its lobbying efforts are focused on the UK government and the National Health Service (NHS). The ABPI spends considerable resources advocating for policies that incentivize investment in research and development and that provide favorable pricing for new medicines.

• A "Broken" System: Recent news reports highlight the ongoing friction between the UK government and the pharmaceutical industry over drug pricing. Pharmaceutical companies have publicly warned that the UK's "clawback tax" on medicines, which forces companies to repay a portion of their revenue to the government, is making the country uncompetitive. This public and private lobbying campaign, which includes the public statements of companies like Merck when it announced it was scrapping a new London research center, demonstrates the industry's willingness to use significant economic leverage to influence policy.

• The Revolving Door: The UK also has a "revolving door" culture, where former government officials and regulators move into the pharmaceutical industry. These individuals bring with them invaluable networks and knowledge of how to navigate the corridors of power, which is a form of lobbying influence that is difficult to quantify in purely financial terms.

The Contrast and Conclusion

While it's difficult to provide a precise, single number for lobbying spending due to a lack of complete transparency, the data available points to a clear conclusion: the pharmaceutical industry spends tens of millions of euros and pounds annually on lobbying in London and Brussels.

The scale of this spending is amplified by a sophisticated, multi-faceted strategy that goes beyond simple financial transactions. It involves:

• Expertise: Providing expert information on complex scientific and medical issues.

• Economic Arguments: Framing their interests as essential for economic growth, job creation, and investment.

• Strategic Access: Leveraging the "revolving door" and funding parliamentary and patient groups to gain privileged access and build a network of allies.

Compared to other industries, the pharmaceutical sector's lobbying is arguably more deeply integrated into the regulatory and legislative process due to the nature of healthcare. Its spending is significant, but its influence is even greater because of the strategic and often subtle ways it works to shape policy in its favor in the heart of European and UK governance.