This paper narrows the performance gap between small, specialized models and significantly larger general-purpose models through domain adaptation via continual pre-training and merging. We address the scarcity of specialized non-English data by constructing a high-quality German medical corpus (FineMed-de) from FineWeb2. This corpus is used to continually pre-train and merge three well-known LLMs (ranging from 7B to 24B parameters), creating the DeFineMed model family. A comprehensive evaluation confirms that specialization dramatically enhances 7B model performance on German medical benchmarks. Furthermore, the pairwise win-rate analysis of the Qwen2.5-based models demonstrates an approximately 3.5-fold increase in the win-rate against the much larger Mistral-Small-24B-Instruct through domain adaptation. This evidence positions specialized 7B models as a competitive, resource-efficient solution for complex medical instruction-following tasks. While model merging successfully restores instruction-following abilities, a subsequent failure mode analysis reveals inherent trade-offs, including the introduction of language mixing and increased verbosity, highlighting the need for more targeted fine-tuning in future work. This research provides a robust, compliant methodology for developing specialized LLMs, serving as the foundation for practical use in German-speaking healthcare contexts.

The recent success of large language models (LLMs) has been predominantly driven by curating the training dataset composition, scaling of model architectures and dataset sizes and advancements in pretraining objectives, leaving tokenizer influence as a blind spot.Shedding light on this underexplored area, we conduct a comprehensive study on the influence of tokenizer choice on LLM downstream performance by training 24 mono- and multilingual LLMs at a 2.6B parameter scale, ablating different tokenizer algorithms and parameterizations. Our studies highlight that the tokenizer choice can significantly impact the model’s downstream performance and training costs. In particular, we find that the common tokenizer evaluation metrics fertility and parity are not always predictive of model downstream performance, rendering these metrics a questionable proxy for the model’s downstream performance. Furthermore, we show that multilingual tokenizers trained on the five most frequent European languages require vocabulary size increases of factor three in comparison to English. While English-centric tokenizers have been applied to the training of multi-lingual LLMs in the past, we find that this approach results in a severe downstream performance degradation and additional training costs of up to 68%, due to an inefficient tokenization vocabulary.