The French pharmaceutical sector is going through a period of great turbulence. According to Ellisphere's sector study, published in January 2025, the number of company failures in the sector has risen sharply, with a +37.2% increase over 12 months. This crisis highlights the structural and economic challenges facing the industry, marked by supply tensions, declining profitability and growing dependence on imported raw materials.

An alarming rise in insolvencies

The figures are worrying: in the space of a year, the number of business failures in the pharmaceuticals sector has risen from 130 to 177, illustrating a significant deterioration in the sector's economic fabric. This trend is particularly marked in pharmaceuticals retailing, which accounts for 63.3% of bankruptcies, followed by wholesaling (31.6%). The manufacture of pharmaceutical preparations saw an explosion in bankruptcies (+200%).

Île-de-France, Auvergne-Rhône-Alpes and Nouvelle-Aquitaine account for a significant proportion of pharmacies and pharmaceutical industries, but these regions have not been spared by the crisis. In some areas, the number of bankruptcies has risen by more than 100%.

Crisis factors: shortages and dependence on imports

One of the main causes of this situation is the shortage of certain drugs. The high concentration of active ingredient production in India and China (60% to 80% of essential molecules) is weakening supplies in Europe. France, once a leader in pharmaceutical production, has gradually lost its industrial sovereignty, dropping from 1st to 6th place among European producers in 20 years.

Drug prices in France are also among the lowest in Europe, creating economic difficulties for pharmacies and reducing the attractiveness of the market for manufacturers. As a result, stock-outs are on the increase: in 2023-2024, nearly 5,000 drugs were either out of stock or in tight supply.

Pharmacies in dire straits

Retail is on the front line of this crisis. In the space of a year, the number of pharmacy bankruptcies has risen by a worrying 47.4%, jeopardizing access to healthcare, particularly in rural areas. One pharmacy in two is experiencing cash flow pressures, exacerbated by rising operating costs and shrinking margins.

The aging of the profession is also complicating generational succession. By 2022, 19% of pharmacists were over 60, compared with 12% in 2012, and the profitability of small pharmacies no longer appeals to young graduates, who prefer larger structures.

Outlook and recovery attempts

Faced with this critical situation, the French government and industry are trying to react. The "France 2030" plan aims to partially reindustrialize the sector, particularly for the production of essential medicines. At the same time, an economic rider to the national pharmaceutical agreement, signed in 2024, provides for financial aid to pharmacies in difficulty, as well as an increase in margins for certain drugs.

The major pharmaceutical companies, represented by Leem, have also announced a three-year plan to encourage more rational prescribing, in order to reduce costs for the French social security system. But will these measures be enough to stem the crisis?

The French pharmaceutical sector is facing major challenges that call for far-reaching reforms and increased support from the public authorities. Without a more ambitious reindustrialization strategy and rapid economic adjustments, the sector's fragility could have lasting repercussions for the entire French healthcare system.