Innovation Ability in Mid-sized Companies in the Pharma Industry in Germany

Core Messages

• Examples of some of the hurdles facing the mid-sized pharma companies with regard to product innovation are the high number of regulations, the high tax burdens and the insufficient financing possibilities.
• The gap between R&D and marketing can not be closed in many projects based on the existing business model, so that here co-operations / partnering is a first step.
• Financing of projects by external investors is seen as positive to bridge the relative financial gaps.
• Equity mezzanine is a means for the company to obtain liquidity without the necessary additional collateral, so that the company has the possibility to extend the required lending margin.
• One alternative to promote innovation would be a development fund which would make possible the realisation of a suitable structure for significant tax advantages regarding license business, due to the fact that a part of the profit could be transferred to a tax-efficient location.