European pharmaceutical industry faces production declines

The pharmaceutical industry in Germany and Austria is facing significant production and revenue declines due to several economic and political factors. In Germany, the Association of Researching Drug Manufacturers (VFA) forecasts a 2.2% drop in production and a 1.8% decrease in real turnover, citing trade disputes with the United States and low water levels affecting production. Job growth in the German sector has also largely stalled.

Austria’s pharmaceutical sector is experiencing even sharper declines due to its high export dependency. The Austrian Chemical Industry Association (FCIO) reported an 8.4% value decrease in the first half of the year, with pharmaceutical specialties dropping by 12.7%. Industry leaders attribute these trends to US trade policies favoring domestic production, restrictive local pricing and reimbursement regulations, high energy and labor costs, and increased competition from low-priced antibiotics imported from China.