US Launches Trade Investigation into German Drug Pricing

The United States has launched a trade investigation against Germany over drug pricing. According to several media reports, Washington wants to examine whether innovative medicines are systematically under-remunerated on the German market, leaving US patients to shoulder a comparatively high share of research and development costs.

The announcement was made on Thursday in a statement from the office of the US Trade Representative, Jamieson Greer, who, according to the Reuters news agency, launched the investigation on suspicion that Germany is paying too little for innovative medicines. "I am particularly concerned by reports that Germany is fast-tracking legislation that would further reduce spending on innovative medicines," Greer said.

Depending on the findings, the United States could consider trade measures up to and including punitive tariffs. Greer pointed out that the investigation had been preceded by months of talks with the federal government, which so far have not produced a solution.

Washington says US patients bear greater burden

Greer called on Berlin to enter into talks on pricing. For years, the United States has argued that European healthcare systems benefit from lower drug prices, while American consumers foot a larger share of the cost of innovation.

Washington is particularly critical of the federal government's planned health reform. According to Reuters, Greer voiced concern that the measures envisaged could further reduce spending on innovative medicines. The reform is intended to help plug a multibillion-euro gap in the statutory health insurance system and includes, among other things, additional savings contributions from the pharmaceutical industry.

At the heart of the initial plans was a dynamic manufacturer rebate that was to be linked to trends in drug prices and health insurers' revenues. Under the government's latest proposals, the industry is still expected to make a financial contribution to stabilising the health insurance funds. However, instead of a variable mechanism, discussions are now focusing on a fixed surcharge on the existing manufacturer discount.

At the same time, Federal Health Minister Nina Warken (CDU) had proposed exempting companies from additional rebates if they conduct clinical trials in Germany. The aim is to strengthen Germany as a research location and ensure that patients continue to have rapid access to new therapies.

A vote in the Bundestag on the controversial health reform, which had been scheduled for next week, is being postponed. According to parliamentary groups from the CDU/CSU and SPD, Federal Health Minister Nina Warken's (CDU) key reform package is now to be adopted on 10 July, the last sitting day before the summer recess.