Federal government wants to make pharmaceutical production in Germany more attractive
The action plan is the German government's response to recent supply bottlenecks for some medicines. In recent years, the production of many important medicines has moved to cheaper locations such as China or India. Problems with supply chains and other issues had led to some medicines becoming temporarily scarce or even unavailable in Germany. The new strategy aims to reduce such dependencies on the global market.
The action plan envisages that the German government will examine new funding instruments to support the establishment of new production facilities. The development of scarce drugs - such as antibiotics or drugs for rare diseases - is to receive special support. A new Federal Ethics Commission is to be set up at the Federal Institute for Drugs to decide quickly on important research applications. The results of medical research are to be passed on to the pharmaceutical industry more quickly.
Federal Minister of Economics Robert Habeck (Greens) explained on the adoption of the strategy: "Our aim is to make our country an attractive location for the research, development and production of pharmaceuticals once again." The action plan should "contribute to the medical and health sovereignty of our country".
Federal Research Minister Bettina Stark-Watzinger (FDP) emphasized that the industry should "create research and innovation-friendly framework conditions and reduce bureaucratic hurdles." She added: "This is the only way Germany can remain a successful pharmaceutical location in the long term."
The strategy paper that has now been adopted states that in recent years, "Germany has become less attractive internationally as a location for research and development". Globalization and strong cost pressure have "already led to an exodus" of production for a large number of active ingredients and pharmaceuticals.
According to the document, 60 percent of the active ingredients of approved drugs were already produced in Asia in 2020. 20 years earlier, the figure was only 30 percent. "This development harbors the risk of strategic dependencies and increases the risk of supply chain disruptions and thus the risk of supply and supply bottlenecks." The new strategy is intended to counteract this development.
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- Karl Lauterbach, a prominent SPD politician, supports the federal government's aim to make pharmaceutical production in Germany more attractive to counteract the relocation of production to cheaper locations like China and India.
- China wants to increase its presence in the digitalization of the pharmaceutical industry, which is causing concerns in Germany, as the country wants to maintain its competitive edge in this sector.
- The German Pharmaceutical Industry Association (BPI) has voiced concerns about the proposed action plan, arguing that it could create further uncertainty in an already challenging business environment.
- The SPD and the Green Party have called on the Federal Cabinet to take decisive action to prevent more pharmaceutical production from moving abroad and ensure the sovereignty of Germany's health care system.
- The BMG, the German Federal Ministry of Health, has announced that it will launch a consultation process with stakeholders in the pharmaceutical industry to gain feedback on the proposed action plan and make adjustments as necessary.
- The new action plan also includes measures to encourage the production of generics and biosimilars in Germany, which could help reduce costs for consumers and increase access to essential medicines.
- The Federation of German Industries (BDI) has welcomed the government's proposed action plan, saying that it could help to create more jobs and secure Germany's position as a global leader in the pharmaceutical industry.
- India has expressed its concern over the proposed action plan, arguing that it could put a strain on already fragile supply chains and lead to price hikes for patients in both countries.
- The Federal Government's action plan on pharmaceutical production is expected to be finalized in Berlin in the coming months, with a focus on making Germany a more attractive location for investment in the pharmaceutical industry.
Source: www.stern.de
