Europe's drug supply crisis sparks fierce clash between pharma leaders and insurers
A heated debate erupted at the Handelsblatt annual conference as pharmaceutical leaders clashed with insurers over Europe's drug supply vulnerabilities. Industry chiefs warned of over-reliance on China and India, while health insurers downplayed the urgency of stockpiling. The exchange highlighted deep divisions on how to secure Germany's medicine supplies.
Germany's dependence on foreign drug production has surged since 2000. Today, two-thirds of generic active ingredients come from Asia, up from one-third two decades ago. Over 80% of key painkillers like Metamizol and antibiotics such as Amoxicillin and Clindamycin are now made in China.
The COVID-19 pandemic improved supply chain transparency, but experts argue this hasn't made Germany more resilient. Tim Steimle of Techniker Krankenkasse (TK) claimed the government's six-month stockpile target had been met. Yet Kerem Inanc, CEO of Alliance Healthcare Deutschland, dismissed the reserve as inadequate, warning that logistics resilience was being taken for granted.
Dr. Kai Joachimsen, head of the Federal Association of the Pharmaceutical Industry (BPI), argued that stockpiling generics made little sense. Instead, he framed health policy as inseparable from industrial and security policy. He pointed to the semiconductor crisis as proof of Europe's fragility, urging autonomy beyond short-term reserves.
Thomas Weigold of Sandoz/Hexal called for far greater self-sufficiency, especially in antibiotics and generics. He labelled the proposed free trade agreement with India 'absurd,' saying it might save costs but would weaken resilience. Steimle, however, welcomed the India deal as a step toward securing supplies.
Inanc stressed that open dialogue was needed, as six-month stockpiles wouldn't fix deeper issues. Weigold agreed, insisting that reliance on China couldn't be solved by talk alone. Steimle noted that while discount contracts had shifted into supply agreements, pediatric medicines remained an exception.
The conference exposed sharp disagreements on how to reduce Europe's drug dependency. Industry leaders pushed for domestic production and long-term restructuring, while insurers saw current measures as sufficient. Without major pricing reforms and investment, experts warn, Germany's supply chains will remain vulnerable.
