Public Health

Finding Balance for Germany's Pharmaceuticals Industry

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  • Why it matters

    Why it matters

    Germany’s future as a pharmaceutical leader is at stake, along with the drug industry’s capacity to innovate and create thousands of jobs.

  • Facts


    • The German government has started a dialogue on pharmaceuticals with the scientific community, industry and trade unions.
    • Some 70 percent of health spending in Germany is covered by statutory and private health insurers.
    • Most development and production of pharmaceutical ingredients now takes place in India and China.
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Medical progress has achieved unparalleled success in recent decades. There are new treatments for diseases like AIDS, which only a few years ago meant certain death. Our life expectancy is steadily increasing.

This is due in part to the development of new medicines, but we still face great challenges. Of 30,000 known diseases, only one-third can be treated. Widespread diseases such as diabetes or Alzheimer’s still have no cure, while others like cancer can only be tempered to an extent.

We must increase our efforts to develop new drugs and forms of therapy. Thanks to Germany’s excellent research institutions and strong pharmaceutical industry, we hold a top position in the world with strong investment, high competitiveness and outstanding scientists.

But global competition is getting tougher and tougher. Most development and production of pharmaceutical ingredients now takes place in countries like India and China. Because many firms have amalgamated their production sites, there’s a danger of shortfalls if only one plant, somewhere in the world, halts production.

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