German Drug Majors Review Generics Hopes

Generics and price competition, coupled with the advance of healthreform, has led to increasing pressure on the German research-based pharmaceutical majors.

Horst Freisler, the new president of the sector association, the VFA, has said that one area that is not showing the expected promise in Germany is generics (an area about which drugmakers in the US market are also making adverse comment). Several German companies have made a costly investment on entry, but have not seen the expected success.

Eastern Europe Also Disappoints Preoccupation with the drug markets of eastern Europe have also proved disappointing. Since November 1996, the German drug industry has seen falling sales, and Mr Freisler said that, after 1997, the returns for the German domestic drug market will decline, though he did not forecast any significant job cuts.