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Drug Pricing · Germany · Pharmaceuticals · Trade Dispute
US Trade Representative Jamieson Greer announced a Section 301 investigation into Germany's drug pricing practices, escalating a transatlantic dispute over claims of unfair pharmaceutical costs and Germany's planned healthcare reforms, including a 7% rebate on patented medicines.
The US alleges Germany's practices disproportionately burden American patients with pharmaceutical research and development costs. Washington seeks a deal similar to the UK's, which boosted net prices for novel treatments by 25% in exchange for tariff cuts.
Germany's Health Minister Nina Warken acknowledges a "strained financial situation" for its statutory health insurance system, making higher prices difficult, but commits to "constructive" talks. The EU, through spokesperson Olof Gill, expects the US to uphold commitments under an existing EU-US trade deal, which introduces a flat 15% tariff rate on innovative pharmaceuticals starting September 29.
Pharma lobbies, including Pfizer CEO Albert Bourla and German trade group vfa, are pressing German officials to reconsider cost-cutting measures, warning of threats to long-term investment predictability.
