The Association of Researching Pharmaceutical Manufacturers (VFA) has accused the Federal Minister of Health, Nina Warken (CDU), of weakening the production of essential medicines within Germany. According to VFA President Han Steutel, investment decisions cannot be based on political whims; rather, they require reliability, predictability, and economic viability. Steutel warned that damaging these industrial foundations will not simply halt production-it will force it out of the country entirely.
The VFA’s concern centers specifically on the proposed Contribution Rate Stabilization Act, which aims to counter the sharp rise in costs faced by German statutory health insurance funds. The industry representative argued that the draft law undermines the established benefit-based pricing model for innovative drugs, thereby weakening the fundamental principle of negotiation. Steutel cautioned that this will significantly deteriorate conditions for market access to new treatments, effectively restricting the availability of pharmaceutical innovations and slowing crucial investment in Germany’s status as a global pharma hub.
In contrast, Steutel welcomed the European Union’s “Critical Medicines Act” calling it a vital signal because it finally treats drug supply security as an industrial policy issue. He stressed that the new EU framework must facilitate genuine investments in robust supply chains and production capacities without introducing additional bureaucracy or market interference.
The need for such European measures stems from the critical goal of preventing shortages of key medications and fostering increased manufacturing within the EU, thereby reducing dependence on foreign producers and suppliers-a concern amplified by geopolitical risks like the Iran-Iraq War and the blockades of the Strait of Hormuz. Although outright drug shortages have not yet occurred, Germany has faced recurring supply issues, including a temporary shortage of certain antibiotics announced by the Federal Ministry of Health earlier this year.