US launches probe into German drug pricing policies.


The US launched a trade investigation into Germany’s drug pricing policies on Friday, raising the prospect of tariffs or other measures if Washington finds that Berlin’s approach unfairly burdens American commerce.

Pharmaceuticals

Source: Sharecast

US trade representative Jamieson Greer said the probe, launched under Section 301 of the Trade Act, would examine whether Germany’s “persistent underpayment” for innovative medicines is unreasonable or discriminatory.

“President Trump has made clear that American patients should not be shouldering a disproportionate share of global pharmaceutical research and development,” Greer said.

The investigation comes as Germany considers reforms aimed at reducing pressure on its public health insurance system, including measures that could increase savings contributions from the pharmaceutical industry.

Greer said he was “particularly concerned” by reports that Germany was fast-tracking legislation that would further reduce spending on innovative medicines, while USTR is seeking public comments and plans to hold a hearing in September.

Reporting by Josh White for Sharecast.com.

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