Facts and Figures on the Pharmaceutical Market in Germany

06/28/2013
Chinese pharmaceutical companies are looking to Europe for growth – not only in regards to delivering APIs but also finished products and setting up own subsidiaries. So they are increasingly becoming interested in the details of the pharmaceutical market in Germany. I have recently been invited by Chinese Pharma Chamber (CCCHMPIE) to give a talk during the CPhI China (Shanghai, 25-26 June 2013) to explain the structure of the German market and the direction it is headed. The facts and figures I presented there make an interesting read for European and, of course, for German companies, too.

The pharmaceutical market in Germany is dominated by small and medium-sized enterprises. Although more than 105.000 people work in this sector, three out of four companies have less than 100 staff. And approximately 95 % of all pharmaceutical companies in Germany have less than 500 staff.

Roughly 16 % of the total expenditures in the statutory health insurance (gesetzliche Krankenversicherung, GKV) is attributable to pharmaceuticals. This means that out of an GKV budget of 179.6 bn euros in 2011, 28.9 bn euros have been spent for pharmaceuticals. Although roughly three quarters of all daily doses in the GKV system consist of generic medicinal products, generics cover less than one quarter of the turnover for pharmaceuticals in the GKV system.

Manufacturers of medicinal products have faced and must continue to face cost-cutting measures like price decrees and mandatory manufacturer discounts. Due to the immense cost pressures the manufacture of drugs in Germany becomes increasingly difficult.

The English presentation is available below. If you need the Chinese version, please contact me!

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