Pharmaceutical

In an international comparison, Germany has lost its position as a production location for pharmaceutical products. Only 6 percent of the overall pharmaceutical production in Europe, Japan and the United States (about USD 370 billion in 2002) came from Germany, compared to 9 percent in 1990.

The domestic pharmaceutical market continues to lose its significance for many manufacturers in Germany. One important reason is continued government regulation such as the 6 percent mandatory rebate. Once again in 2004, the research-based pharmaceutical companies will have to face another decline in their domestic sales.

The consequences of these poor conditions: For the first time since the beginning of the 1997 VFA Member Survey, the capital spending of the research-based pharmaceutical companies in Germany is declining. The employment figures are also not increasing as strongly as during the past few years.