U.S. Launches Trade Investigation Into Germany’s Drug Pricing Policies

The United States has launched a trade investigation into Germany's pharmaceutical pricing policies, arguing that innovative medicines may be undervalued in the German market and that American patients ultimately bear a disproportionate share of research and development costs, Johanna Urbancik reported for Euronews.

The investigation follows months of discussions between Washington and Berlin aimed at resolving disagreements over pharmaceutical pricing.

The announcement was made by US Trade Representative Jamieson Greer, who said the investigation would determine whether Germany's “persistent underpayment for innovative pharmaceutical products” is unreasonable, discriminatory, or harmful to US commerce.

The investigation follows months of discussions between Washington and Berlin aimed at resolving disagreements over pharmaceutical pricing.

The Trump administration argues that Germany’s pricing framework, which includes negotiated discounts and mandatory rebates, suppresses prices for newly introduced medicines.

US officials contend that lower prices abroad force American consumers to shoulder a greater share of the costs associated with pharmaceutical innovation.

“I am particularly concerned by reports that Germany is fast-tracking legislation that would further reduce spending on innovative medicines,” Greer said.