Germany is a mature market with high healthcare expenditure and pharmaceutical production but future growth could be potentially hindered by cost-saving government policies.
The pharmaceutical market in Germany is valued at $58.6 billion in 2014, according to research and consulting firm GlobalData. Despite its position as the leading pharmaceutical market in Europe, the sector is projected to expand at a modest compound annual growth rate (CAGR) of 1.7% to reach an estimated $65 billion by 2020.
A new GlobalData report notes that Germany is a mature market with high healthcare expenditure and pharmaceutical production but future growth could be potentially hindered by cost-saving government policies. Arzneimittelmarkt-Neuordnungsgesetz (AMNOG), for example, was introduced by the German government in 2011 to control the increasing drug expenditure within the public health sector. Drug manufacturers, however, have not approved of the new measures introduced by this law.
Prior to the enactment of AMNOG in Germany, there were very few limitations to the drug pricing of new or patented products, and this was one of the main reasons for the increasing healthcare expenditure, commented Joshua Owide, GlobalData’s director of healthcare industry dynamics in a press statement. “AMNOG features an early benefit assessment for newly registered medicinal products, whereby drugs with no additional benefit are placed on the reference pricing system, which fixes a maximum reimbursement limit for groups of comparable treatments. For drugs with added benefits, prices can be negotiated with their manufacturers.”
In the report, GlobalData highlighted that these measures are further exacerbated by government-imposed price freezes and reductions on pharmaceuticals, a large market for generic products and the exclusion of several drug categories by Statutory Health Insurance (SHI).
Owide observed that patients are often unwilling to opt for drugs that are not reimbursed by SHI funds and this has an effect on the market for those products. “Furthermore, according to Federal Health Reporting, the German generic market is the largest in the EU, accounting for approximately 73.5% by volume and 33.1% by value of Germany’s total pharmaceutical sales in 2013. This tendency to favor generics may restrict future sales of patented drugs.”
Source: GlobalData
Drug Solutions Podcast: A Closer Look at mRNA in Oncology and Vaccines
April 30th 2024In this episode fo the Drug Solutions Podcast, etherna’s vice-president of Technology and Innovation, Stefaan De Koker, discusses the merits and challenges of using mRNA as the foundation for therapeutics in oncology as well as for vaccines.
Drug Solutions Podcast: Gliding Through the Ins and Outs of the Pharma Supply Chain
November 14th 2023In this episode of the Drug Solutions podcast, Jill Murphy, former editor, speaks with Bourji Mourad, partnership director at ThermoSafe, about the supply chain in the pharmaceutical industry, specifically related to packaging, pharma air freight, and the pressure on suppliers with post-COVID-19 changes on delivery.
Understanding the Variability in Bioburden Test Results in Biomanufacturing
May 7th 2025This article explores the impact of test volume, microbial distribution, and dilution errors on bioburden testing variability. It presents statistical approaches to estimate percentage error and discusses strategies to optimize microbial enumeration techniques in biopharmaceutical quality control.
Trump Directs FDA, EPA to Reduce Regulatory Barriers to Domestic Pharma Manufacturing
May 7th 2025The White House is instructing FDA to increase fees for and inspections of foreign drug manufacturing plants and reduce the time required to approve such sites that will be newly constructed in the US.