Pharmaceutical products worth EUR 27.7 billion were produced in Germany in 2012, an increase of 2.8 percent compared with the previous year. However, production growth in 2012 is not reflected in the companies’ corresponding revenue statements. Government intervention (e.g. legally mandated discounts, price freezes) has actually caused domestic manufacturing revenue to decrease by 0.6 percent. With a net added value of over EUR 125,000 per employee in 2010, the pharmaceutical industry is one of the best performing and most productive industries in Germany.

While producer prices in the manufacturing industry have risen by 30 percent since 1990, the pharmaceutical industry has kept the price level almost stable through process innovations.

The export share of drugs produced in Germany has more than doubled over the last 15 years.

With capital spending at a 3.3 percent share of sales, the pharmaceutical industry is one of the industries in Germany with above-average capital spending. This triggers considerable additional production and employment in other industries, as was shown in a study by the German Institute for Economic Research. These indirect production and investment effects increase the industry’s added value by roughly another 90 percent. In particular, industry sectors that provide higher added value and employment volume, such as research and development services, are pulled along by the pharmaceutical industry. Each job in one of our companies creates another job in another industry.

The Pharmaceutical Industry in Germany

Germany: The Perfect Location for Research, Production and Sales - a publication by GERMANY TRADE & INVEST and vfa
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