German pharmacies face competition and procurement shifts

German health policy is increasingly focused on the competitive tension between domestic brick-and-mortar pharmacies and foreign mail-order providers. Federal Health Minister Carsten Linnemann has expressed a commitment to creating a ‘level playing field,’ suggesting that current regulatory differences between national and European providers may distort competition. Discussions are ongoing regarding whether a ban on prescription drug mail-order services is enforceable under European Union law.

Simultaneously, the operational landscape for pharmacies is shifting toward direct procurement. According to a survey by IFH Köln, 99 percent of surveyed pharmacy owners now order medicines directly from manufacturers or via manufacturer platforms in addition to using wholesalers. While 59 percent of respondents reported that direct business has grown significantly in importance over the last two years, wholesalers remain preferred for their superior handling, flexibility, and delivery speed. However, direct procurement is viewed more favorably regarding delivery availability and invoice transparency.