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Why the pharmaceutical industry in Germany is booming

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Marta Grudzinska
April 23, 2025

While some key sectors in Germany are not doing well at the moment, the pharmaceutical industry is booming like it hasn't for a long time. Germany is on its way to becoming a top location again, why?

Germany's pharmaceutical industry is a cornerstone of its economy, with over 400,000 employees and significant investments in research and development, reinvesting 16% of revenue.

Despite high production of medicines worth €38 billion, the industry faces challenges such as supply bottlenecks, high costs, and international competition.

Innovations and strong research capabilities help maintain Germany's position as a leading pharmaceutical hub, attracting global investments and aiding in developments like the COVID-19 vaccine.

Regulatory hurdles and high energy prices pose difficulties, prompting policymakers to simplify processes and boost investment conditions for competitiveness.

With ongoing efforts to accelerate research and innovation, Germany aims to reclaim its role as the "world's pharmacy."

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