How Do German Pharmaceutical Companies Work?

German pharmaceutical companies follow specific laws, regulations, and practices to operate in the market. Read this blog article to learn more about how they operate and how they are regulated.

What is a pharmaceutical company?

A pharmaceutical company is a business that manufactures and sells drugs, or medical devices. Pharmaceutical companies are responsible for the research and development of new drugs, as well as marketing and distribution. Some pharmaceutical companies also offer health insurance products. There are several different types of pharmaceutical companies, including small- and medium-sized enterprises (SMEs), large multinational enterprises (MNEs), and global public companies. 

The pharmaceutical industry is highly regulated by the government in many different countries around the world. This is because drug safety is a significant concern for both consumers and healthcare professionals. The regulatory process begins with preclinical research, which involves testing new drugs on animals to assess their potential risks and benefits. After preclinical testing is complete, most molecules enter clinical trials. Clinical trials are designed to determine whether a drug is safe and effective in humans. If the drug appears to be safe and effective during clinical trials, it may be approved by the regulatory body or manufacturers may choose to discontinue its development. If the drug does not appear to be safe or effective during clinical trials, it may be discontinued or placed into further development. Once a drug has been approved by the regulatory body, it can be marketed to consumers

How do German pharmaceutical companies work?

German pharmaceutical companies are some of the largest and most innovative in the world. They have a strong focus on research and development, which enables them to create new products that improve people’s lives.

One of the main ways German pharmaceutical companies work is by partnering with other companies. This allows them to share resources and learn from each other. They also commonly form joint ventures with other countries’ pharmaceutical companies to expand their reach.


German pharmaceutical companies are known for their scrutiny of new products before they go onto the market. This means that they often have the latest treatments available, as well as those that have been extensively tested.

How are the medicines created in Germany?

Germany is one of the most active pharmaceutical countries in the world. In 2016, it accounted for 16% of the global market share in medicines sales. The German Pharmaceutical Industry (GPII) employs around 130,000 workers, who develop and produce medications domestically and internationally. 


Pharmaceutical companies in Germany are highly regulated and often have a long product pipeline with multiple product versions being developed simultaneously. The country has an excellent infrastructure for research and development including world-class universities and institutes. The GPII is also known for its innovation capabilities with dozens of new drug molecules entering the market every year. 

Some key factors that contribute to the success of German pharmaceutical companies include strong ties to academia; stringent quality controls; Research & Development (R&D); close collaboration with other industries such as chemicals, equipment, etc.; rigorous Packaging & Labeling regulations; co-development partnerships with other industry players, etc.

Expenses of medication

In Germany, the government plays an important role in the pharmaceutical sector. The cartel price fixing by German pharmaceutical companies in the 1990s cost taxpayers hundreds of millions of Euros. 

The Ministry of Health, Family and Social Affairs (BMJ) negotiates drug prices with manufacturers on behalf of the German taxpayer and sets maximum prices for many medications. In addition, the BMJ regulates drug advertising and sponsors early research into new treatments. 

One common way that German pharmaceutical companies avoid high expenses is through rebates from doctors and hospitals. For example, a patient might receive a 10 percent rebate on their out-of-pocket medication costs if they are prescribed medications from a participating doctor or hospital. 

This creates an incentive for doctors to prescribe expensive drugs since patients will end up paying less out of pocket than if they had to pay full price. However, it also leads to higher costs for taxpayers as rebates can artificially inflate drug prices.

The government has also created several programs designed to help low-income patients afford medication. This includes the so-called “Janus” program, which pays pharmacies money for generics instead of brand-name medications. The program has been successful in reducing healthcare costs overall, while also improving patient access to critical medications. 

Another program called “MyAssist” provides subsidies for people who cannot afford their medication without it causing financial hardship. MyAssist helps more than 1 million people each year afford life-saving prescriptions

Leave a Reply

Your email address will not be published. Required fields are marked *