German biotech now fears impact of drug pricing reforms

Germany’s medicinal biotechnology sector came through the global financial crisis with flying colors, but is under threat from Germany’s drug pricing reforms. That was the message from a medicinal biotech panel in Munich this week led by Frank Mathias, chairman of VFA Bio and chief executive of the biotech firm MediGene AG. VFA Bio is the lobby group for biotechnology within the German pharmaceutical association, the VFA.

In 2009, biopharmaceuticals turnover expanded by 5.4% to 4.7 billion euros ($6.55 billion), leaving it with a 16% share of the overall drugs market, which grew by almost 4%. Pipelines are in good shape too. 468 biopharmaceuticals were in clinical development in 2009, a 12% increase on 2008, with a particular emphasis on cancer treatments and vaccines. Biopharmaceuticals accounted for 12 of the 44 new drugs approved in Germany last year. Employment in the sector rose by 1%.

Pediatric focus for biotech products

Medicinal biotech plays a leading role in developing drugs for children. Two thirds of bio drugs are approved for pediatric use, Dr Mathias pointed out, and biotech often develops drugs with children in mind from the beginning, as is the case with growth hormones and insulins. In the next few years the industry hopes to produce new vaccines for meningitis and drugs to prevent diabetes in children.