The German pharmaceuticals market is expected to grow from €52.9bn ($67.9bn) in 2016 to €67.2bn ($86.3bn) in 2021, according to a report by GlobalData .

Titled ‘CountryFocus: Healthcare, Regulatory and Reimbursement Landscape – Germany’, the report covers Germany’s mature healthcare market.

The market is expected to be primarily driven by the rise in elderly population and the associated disease burden.

Government initiatives, however, are likely to reduce healthcare expenditure, thereby limiting the market’s growth.

"The market is expected to be primarily driven by the rise in elderly population and the associated disease burden."

The German Government has increased its focus on reducing healthcare expenditure to maintain the country’s economic stability. It is regulating various aspects of healthcare expenditure, including reimbursement and pricing policies, and reference pricing through the Eurozone’s austerity measures.

Despite these measures, Germany is emerging as a future hub of innovative medicines with its strong infrastructure support for both domestic and foreign companies to establish or expand their operations.

The country’s stable fiscal environment characterised by low corporate taxes, structural debt and interest rates ideally supports sustained economic growth. A transparent regulatory system further encourages foreign investors to enter the market.

The attractive German market is, therefore, encouraging the development of biopharmaceuticals with numerous drugs currently in Phase III clinical trials. For example, 100 biologically active ingredients were under development in 2015 in one of the three phases of clinical trials. Furthermore, 12 biologics received approval during the same year.