The United States has launched an investigation into Germany’s drug policies as European countries seek to rein in soaring medical costs, including spending on pharmaceuticals.
“President Trump has made clear that American patients should not bear a disproportionate burden of global drug research and development,” U.S. Trade Representative Jamieson Greer said in a statement late Thursday.
He said he was “particularly concerned by the news that Germany is rushing to pass legislation that will further reduce spending on innovative medicines”, calling this a “serious setback”.
In April, Germany proposed a review of its health insurance system to ease pressure on public finances after health spending has increased significantly in recent years.
Various cost-cutting measures were introduced, including increased discounts for insurance funds from the pharmaceutical industry, prompting many pharmaceutical executives to warn of possible withdrawals or postponements of new drugs in the country.
The bill is currently going through the parliamentary process.
The U.S. investigation was launched under Section 301 of the Trade Act, which allows unilateral action against countries that engage in unfair practices that burden U.S. commerce.
Greer said the U.S.’s trading partners must pay a proportionate share to fund research into new drugs, and the study will follow months of consultation with Germany’s partners.
Last year, the Trump administration introduced the so-called Most Favored Nation Drug Policy (MFN), which pegs drug prices in the U.S. to drug prices overseas.
Germany’s Health Ministry did not respond to a request for comment.
