Despite its ageing population and consequent increased need for medicines, the pharmaceutical industry is losing ground in the Netherlands, the Financieele Dagblad said on Thursday.

This is in sharp contrast to neighbouring countries where pharmaceutical production is blossoming. Accountancy firm PwC said there was a direct link to the Dutch government’s focus on cheaper medicines in a report commissioned by the innovative medicines association (VIN), a sector organisation representing the Dutch pharmaceutical industry.

The authors of the report noted there was one bright spot in that many new biotechnology companies are now developing new medicines in the Netherlands. There has been substantial growth of young firms in this sector PwC said.

The report said more effort should be made to attract international companies to set up production facilities. given the good infrastructure and the large skilled labour market. The pharmaceutical industry presently employs 65,000 people.

The Netherlands no longer has any large home-grown pharaceutical companies. The largest producer is US-based MSD in Oss. Others include Teva in Haarlem, Johnson & Johnson subsidiary Janssen in Leiden and Astelllas in Meppel.