Bayer says Europe may need to pay more for medicines, FT reports

Bayer (BAYRY) has warned that Europe may need to pay higher drug prices to remain an attractive market for innovative medicines, arguing the long-standing model, where U.S. patients effectively subsidize global pharmaceutical R&D, is becoming unsustainable, The Financial Times’ Florian Muller and Aanu Adeoya report. Stefan Oelrich, head of Bayer’s pharmaceuticals division, said a rebalancing of global pricing is needed amid growing pressure from industry and Washington. “The American government has made it clear it does not see why the U.S. should finance global R&D alone,” he said, adding that Europe would “have to reorient” towards higher price levels over time.