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last updated: 14 January 2005

Population (2004)

82.499 m

GDP (2003)

€1,985.2bn

Health expenditure (2003)

Health expenditure as proportion of GDP (2003)

Size of pharmaceutical market (2003)

Proportion of GDP spent on pharmaceuticals (2002)

Pharmaceuticals as a proportion of health spend (2002)

Pharmaceutical market growth rate (2003)

Local currency

Euro (€)



Summary: Germany

Germany is the third-largest market for pharmaceuticals in the world but one that is highly regulated with federal budgets. Despite all claims regarding "exploding pharmaceutical costs", Germany only ranks in the middle in the international comparison when it comes to per-capita sales.

Legislations such as the 2001 law requiring pharmacists to substitute cheaper parallel imports and generics if present, make Germany the largest European market for generics and one in which the degree of penetration of re-imported drugs is especially high.

The healthcare reforms introduced in January 2004 lead to a freedom of pricing along every part of the distribution chain for OTC drugs, and subject every prescribed pharmaceutical to a reference pricing mechanism. Further reforms to be undertaken will tackle the financing part of the healthcare system.

Summary of report content

  • Summary
  • How is the healthcare system structured?
  • What size is the pharmaceutical market?
  • Are pharmaceuticals taxed?
  • How are drug prices set?
  • How are prices changed?
  • How are drugs reimbursed?
  • Is there a payback arrangement?
  • Are hospital sales controlled?
  • Are OTC prices regulated?
  • How are pharmaceutical costs controlled?
  • How are generic drugs priced?
  • What are wholesale/pharmacy margins?
  • Is parallel trade influential?
  • What to look out for
  • Glossary
  • Useful Contacts

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News
24/03/2006
Doctors protest against drug penalties proposals

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06/10/2005
Pharmacists and health funds settle their conflict

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01/01/2004
OTC drug pricing law reformed

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