Pharmaceutical industry warns: Association: Dependence on China endangers drug supplies

Antibiotics, diabetes medications, painkillers: Germany is dependent on China for many medicines. In a new study, the pharmaceutical association Pro Generika warns of a strong dependency that China could use as political pressure – similar to the export restrictions on rare earths in the customs dispute with the USA.

A possible stop in the supply of active ingredients for copycat drugs would create large gaps in the drug supply in Germany, according to the analysis. For this purpose, 56 active ingredients were examined that are officially classified as relevant to health care, including painkillers, antibiotics, diabetes medications and biopharmaceutical copycat products. Result: For 20 of the active ingredients, i.e. over a third, the proportion of Chinese manufacturers is so high that the supply would be at risk if deliveries were stopped. Antibiotics as well as diabetes and painkillers are particularly affected.

Deliveries from China can hardly be replaced

In recent years, Chinese producers have invested specifically in systems for antibiotic active ingredients, for example, and have developed into key suppliers worldwide. In the event of a failure, there would be no sufficient alternative sources of supply on the world market, “a short-term expansion of our own capacities is not technically possible.”

The authors of the study for Pro Generika come from, among others, the German Economic Institute and the European Union Institute for Security Studies. The association represents the interests of generic drug manufacturers. Such copycat products of drugs whose patent protection has expired play an important role in the healthcare system due to their low prices. Bork Bretthauer, managing director of Pro Generika, calls for political intervention to prevent dependencies. “They cannot allow us to end up exactly like we did with Russian gas.”

Manufacturers complain about cost pressure

The shortage of medicines such as fever syrups or painkillers is discussed again and again. Pharmaceutical associations such as Pro Generika have been calling for less strict guidelines from politicians who regulate drug prices for years. They blame cost pressure for the fact that manufacturers in Germany have withdrawn from the production of fever juices or penicillin.

The study authors write that export bans on generic drugs are conceivable. Public Chinese documents such as five-year plans showed that Beijing was discussing export restrictions as a means of pressure. The association draws parallels to export controls on rare earths that China is using in the customs dispute with the USA.

Europe does have a lead when it comes to innovative medicines such as biopharmaceuticals. But China is catching up, warns Pro Generics. The country is well on its way to becoming a global innovation engine in drug development. Germany must secure its production sites, broaden supply chains and promote innovation.