Slow growth forecast for Germany's pharma market

While Germany is the leading pharmaceutical market in Europe, valued at $58.6 billion in 2014, the sector will expand at a modest compound annual growth rate (CAGR) of 1.7% to reach an estimated $65 billion by 2020, a new study finds.

According to research and consulting firm GlobalData’s latest report, Germany is a mature market with high health care expenditure and pharmaceutical production. Indeed, cost-saving government policies will be the largest barrier to future growth.

In 2011, the German government initiated a law on the reorganization of the pharmaceutical market, Arzneimittelmarkt-Neuordnungsgesetz (Reform of the Market for Medicinal Products: AMNOG), with the aim of slowing down the growing drug expenditure within the public health sector. This law introduced measures that have not been welcomed by most drug manufacturers.