In Germany, the pharmaceutical sector is facing increasing challenges, as many manufacturers are not expected to achieve significant improvements under the new pharmaceutical legislation.
This is confirmed by the association known as “Pro Generika,” which represents German companies producing drugs that have expired patent protection. Generic drugs, which are considered more cost-effective, often face recurring supply problems.
The pharmaceutical sector in Germany is facing significant challenges
- Facing challenges
Despite the continuous increase in demand for these drugs in the German market, the percentage of medications derived from the total actual pharmaceutical budget continues to decline.
Companies that produce active ingredients such as “Tamoxifen,” used in breast cancer treatment, are facing economic challenges that compel them to halt production.
Excessive reliance on active ingredient production in Asia has led to a heightened dependence on a small number of manufacturers in China and India.
- The impact of epidemics
Exceptional pandemic seasons, like the severe wave of viral and bacterial infections witnessed in the country last winter, make matters more complicated.
Demand for certain medications saw a significant increase, as was the case with the fever medication “Paracetamol.”
- international context
Some medication shortages are being faced at the international level, for example, antibacterial drugs are rare throughout Europe.
Furthermore, the healthcare system in Germany pays less than the actual cost for many medications, making Germany one of the countries that pay the lowest price for derived medications in Europe.
- Update laws and recommendations
Despite measures introduced in the new legislation, such as increasing prices for pediatric medications by up to 50%, they may not achieve the desired improvement.
To enhance supply stability, policymakers must identify medications that should be produced locally and promote domestic production.
There is an urgent need for government support for the pharmaceutical industry, similar to the support provided to the semiconductor industry. However, so far, this issue has not been seriously addressed by the government.
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