The German pharmaceutical market is the fourth-largest in the world and the largest in Europe. The country’s high-quality infrastructure, skilled workforce, and strong research and development (R&D) capabilities make it an attractive destination for contract manufacturing organizations (CMOs). However, working with a CMO in Germany can be challenging for foreign companies due to the country’s stringent regulations. In this blog post, we will explore the challenges and opportunities of pharmaceutical contract manufacturing in Germany.
Overview of the German pharmaceutical market
In recent years, the German pharmaceutical market has been characterized by a number of trends, including an increase in the use of generic medications, a shift towards outpatient care, and a growing focus on patient safety.
The German pharmaceutical market is the fourth largest in Europe and the ninth largest in the world. In 2016, it was valued at approximately EUR 83.5 billion. The market is expected to grow at a compound annual growth rate (CAGR) of 3.1% between 2017 and 2021, reaching EUR 94.3 billion by 2021.
The vast majority of German pharmaceutical companies are small to medium-sized enterprises (SMEs). In 2016, there were 544 registered pharmaceutical companies in Germany, 97% of which were SMEs. These companies employed approximately 81,700 people in 2016.
The top 10 pharmaceutical companies in Germany (in terms of sales) are: Bayer AG; Boehringer Ingelheim; Merck KGaA; Sanofi-Aventis Deutschland GmbH; Pfizer Deutschland GmbH; Novartis Pharma GmbH; Roche Pharma AG; GlaxoSmithKline GmbH & Co. KGaA; Astellas Pharma GmbH; and STADA Arzneimittel AG.
The role of contract manufacturing in the German pharmaceutical industry
The German pharmaceutical industry is the largest in Europe and the sixth largest in the world. It is characterized by a high level of research and development (R&D) expenditures, a strong focus on exports, and a well-developed infrastructure. The country’s pharmaceutical market was valued at around EUR 61.4 billion in 2018 and is expected to grow at a CAGR of 3.5% during the forecast period of 2019-2024.
Contract manufacturing plays an important role in the German pharmaceutical industry, particularly in the production of finished dosage forms (FDFs). According to a report by Markit, Germany was the second largest market for contract manufacturing of FDFs in Europe in 2018, with a market share of 19%. The demand for contract manufacturing services is driven by the country’s large number of multinational pharmaceutical companies that outsource part of their production to reduce costs and time to market.
Some of the leading contract manufacturers present in Germany include Recipharm, Vetter Pharma, Venus Pharma GmbH, Siegfried, and Procaps. These companies have extensive experience in serving major pharma clients such as Bayer, Boehringer Ingelheim, Merck KGaA, and Novartis.
The benefits of pharmaceutical contract manufacturing in Germany
The benefits of pharmaceutical contract manufacturing in Germany are many and varied. One of the main benefits is the cost savings that can be achieved by outsourcing production to a German contract manufacturer. In addition, there are a number of other benefits that make Germany an attractive option for pharmaceutical companies looking to outsource production. These include the skilled workforce, the advanced infrastructure, and the favourable regulatory environment.
The challenges of pharmaceutical contract manufacturing in Germany
The German pharmaceutical market is one of the most challenging markets for contract manufacturers. The country has a highly regulated environment with strict quality and safety standards. In addition, the German market is very competitive, with a large number of small and medium-sized companies competing for market share.
As a result, contract manufacturing in Germany can be a complex and costly process. Contract manufacturers must have a deep understanding of the regulatory environment and be able to meet the stringent quality standards. They also need to be able to compete on price, as margins are often tight.
Despite these challenges, there are many opportunities for contract manufacturers in Germany. The country has a large and growing population, as well as a strong economy. In addition, the German government is supportive of the pharmaceutical industry and provides significant funding for research and development.
If you are considering contracting manufacturing in Germany, it is important to partner with an experienced and reputable company. They will be able to navigate the challenges and help you take advantage of the opportunities in this important market.
The future of pharmaceutical contract manufacturing in Germany
The future of pharmaceutical contract manufacturing in Germany is looking very promising. The country has a well-developed infrastructure and highly skilled workforce, making it an ideal location for this type of manufacturing. Additionally, the German government is supportive of the industry and provides incentives for companies to set up shop in the country.
There are a few challenges that need to be addressed in order to make the future of pharmaceutical contract manufacturing in Germany even more bright. One challenge is the country’s strict regulations, which can make it difficult for companies to get their products approved for sale. Additionally, the high cost of labor and raw materials can make it difficult to compete on price with other countries. However, if these challenges can be overcome, there is no doubt that Germany will continue to be a leading destination for this type of manufacturing.