The European Union will lose out to the US and Asia because of its cost-cutting and drug pricing. That is the warning given by Sir Andrew Witty, the CEO of GSK and President of the European Federation of Pharmaceutical Industries and Associations. More is needed to be done to protect and reward innovation in the EU, he says. He had significant concerns about the implications of pharmaceutical pricing and reimbursement policies being implemented across the EU. Witty added that there was an irony in the sense that many EU countries create incentives for research and development but then ruin that with other hurdles to innovation. Stephen Whitehead, the CEO of the Association of the British Pharmaceutical Industry, has also voiced his worries over the value based pricing system being introduced into the UK.