Italy's biopharma sector thrives but battles global competition and funding gaps

Italy’s biopharma sector remains a rare bright spot in the country’s stagnating industrial landscape. It generates US$15 billion in revenue and employs 29,000 people across 178 companies. Yet, despite its strength, the industry faces challenges in expanding its global competitiveness. Between 2024 and 2025, Italy’s Ministry of Foreign Affairs and International Cooperation led a working group to boost the sector’s international standing. The plan aimed to support national champions in R&D, improve their global visibility, and help them scale up internationally. However, a leading executive in the field criticised the effort for its limited funding and lack of focus on a few competitive firms.

The sector has also navigated geopolitical pressures. Italian authorities have used the ‘golden power’ mechanism to block unwanted foreign influence, as seen in 2023 when the government restricted SinoChem’s rights in Pirelli over its Cyber Tyre technology. Major biopharma players have avoided relying on Chinese capital due to these screening rules and US restrictions like the BIOSECURE Act, which bans federal agencies from working with firms linked to ‘biotechnology companies of concern’.

Italy’s industrial priorities have often centred on other sectors. In October 2024, it backed EU countervailing duties on Chinese electric vehicles. Authorities have also focused on securing the future of the automotive industry by preventing Stellantis from reducing or moving production abroad. Meanwhile, Italian ICT firms are likely to play only a minor role in the development of the upcoming 6G standard. The biopharma industry continues to grow but struggles with limited support and geopolitical constraints. The government’s interventions and global policies shape its ability to compete internationally. The sector’s success will depend on balancing domestic investment with navigating complex international regulations.