German pharma slipping to the back of the field, according to industry body

Germany as a location for the pharmaceutical industry is falling behind its European neighbours, according to the country's Pharmaceutical Industry Association (BPI).

The BPI highlighted subdued market development and stagnating employment figures and said medium-size firms in particular were under pressure. "In comparison with other European countries, Germany is slipping to the back of the field," it said.

The German pharma industry showed 2.2% growth last year, the Association said. Ireland topped the table with 12% growth, followed by Greece (11.3%), Denmark (9.6%), Spain (7.6%), Portugal (6.7%) and Austria (6%). In Italy and France, growth was up 4.1% over the previous year.

Government regulation has put the dampers on market development from the statutory health insurance scheme, the BPI said. It added that with ongoing consolidation of the industry and further government measures, the industry was not expecting any long term positive effect on jobs: the number of those employed in the industry was 113,224, up just 0.2% from the previous year.

Price competition between generic manufacturers had a negative impact on many companies, the BPI said. "Discount deals have squeezed small and medium sized manufacturers who, until now, have guaranteed treatment diversity in Germany," BPI director general Henning Fahrenkamp pointed out.