German pharmaceutical industry in international competition: Study shows a need for action for politics and business

German pharmaceutical industry in international competition: Study shows a need for action for politics and business

The German pharmaceutical industry plays a crucial role in the economy and health care for the population. However, Germany threatens to fall back in the international location competition, as a study by the German Economy Institute shows on behalf of Pfizer. In order to remain successful in the long term, according to the study along the entire value chain, the right impulses must be set by politics and business. An important lever for a strengthened pharmaceutical industry is the translation of basic basic research into applied and clinical research.

The pharmaceutical industry is one of the most productive and investment -strongest industries of the processing trade in Germany. In 2022, around 142,000 people were employed in the German pharmaceutical industry and generated around one percent of the country's total gross value added. With regard to the added value, Germany is in second place in Europe after Switzerland. German pharmaceutical products are in demand internationally, with an export volume of 122 billion euros, which is 1.5 times higher than the imports of these products.

Nevertheless, global competition is increasing. Germany has mediocre development in pharmaceutical research in international comparison. Countries such as China and Belgium have been increasing their research outputs above average for years. In the ranking of the locations for clinical studies, Germany only takes sixth place. Research projects, clinical studies and market launches make more complex regulations and increasing bureaucracy requirements.

The study identifies various potentials along the value chain in order to strengthen the pharmaceutical location Germany in the long term and expand competitive advantages. This includes innovation and investment-friendly framework, the reduction of bureaucratic hurdles, uniform standards when accessing health data, strengthening the transfer of basic research into applied research and the acceleration of digitization. In addition, it is important to open existing silos in the health system through an open exchange of all actors and cross -departmental cooperation of all relevant ministries.

It is emphasized that the pharmaceutical strategy of the federal government already contains many correct measures. However, a reform of the AMNOG is necessary, in particular a withdrawal of the regulations of the GKV Finance Stabilization Act in order to make Germany more attractive for pharmaceutical companies.

The Pfizer Werk in Freiburg is mentioned as an example of a modern and important production location of the pharmaceutical industry in Germany. There are billions of tablets and capsules for prevention, treatment and healing serious diseases every year. Pfizer has invested in the latest technologies to further optimize the production process of innovative drugs.

Pfizer is active worldwide and works to improve people's quality of life through access to innovative drugs and vaccines. The company relies on science and aims to set new standards in the discovery, development and production of medicines.

Table:
- Number of employees in the German pharmaceutical industry in 2022: approx. 142,000
- Contribution from the pharmaceutical industry to the total gross value added in Germany in 2022: approx. 1 %
- Export volume of German pharmaceutical products in 2022: 122 billion euros
- Placement of Germany in the international ranking of the locations for clinical studies in 2021: 6th place

Source: pfizer pharma GmbH/ots