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German Pharma Gains Momentum as U.S. Tariff Threat Looms

While benefiting from export growth and U.S. stockpiling, the industry faces potential setbacks if medical product tariffs are imposed.

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Overview

  • Germany's pharmaceutical sector forecasts 2.5% sales growth, 2.9% production increases, and 1,100 new jobs in 2025, driven by export demand and domestic market recovery.
  • U.S. stockpiling ahead of potential tariffs has boosted German pharma exports, with increased air freight shipments reported by Lufthansa Cargo and DHL.
  • The U.S., Germany's largest pharma market, accounted for €27 billion in exports in 2024, nearly a quarter of the sector's total exports.
  • Industry leaders warn that imposing U.S. tariffs on medical products could lead to short-term cuts, mid-term profitability challenges, and supply chain disruptions for essential inputs.
  • Novartis and Sanofi CEOs have urged the EU to align drug prices with U.S. levels to sustain innovation and prevent a decline in Europe's pharmaceutical competitiveness.