The Office of the U.S. Trade Representative (USTR) opened a Section 301 investigation on June 18 into Germany's pharmaceutical pricing practices, focusing on whether Germany 'unfairly shifts its fair share of costs for pharmaceutical innovation onto U.S. patients and consumers.' The Federal Register notice states that U.S. consumers pay approximately 3.9 times more for brand-name drugs than German consumers. The probe targets Germany's 2026 draft legislation from the Federal Ministry of Health, which would impose an additional 3.5% mandatory rebate on patented medicines in H1 2027, with a variable 'dynamic' rebate that could reach 20% by 2030. The USTR is seeking comments and will hold a public hearing on September 22. USTR Jamieson Greer pointed to the U.S.-U.K. pharmaceutical pricing arrangement (in effect Jan 1, 2026 - Jan 19, 2029) as a model. The investigation follows the 100% tariff on patented pharmaceuticals scheduled for July 31 implementation, affecting 17 major companies including Eli Lilly, Pfizer, and Novo Nordisk.
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