The U.S. Trade Representative launched an investigation into Germany’s drug pricing policies, arguing the U.S. bears a disproportionate share of global biopharma R&D costs. The probe was opened by USTR Ambassador Jamieson Greer under Section 301 of the Trade Act of 1974, citing concerns that Germany is moving to further reduce spending on innovative pharmaceuticals. The coverage links the move to Germany’s April draft law aimed at saving more than €16 billion by controlling insurance rates, with projected insurer deficits rising substantially through 2030. Drugmakers have opposed the changes, and Reuters reporting referenced Germany dropping one contentious element tied to production investment plans. The USTR investigation includes expectations for a public hearing on Sept. 22. If the U.S. finds Germany’s actions unreasonably disadvantage U.S. interests, it could pursue responses such as confidential supplemental discounts or mandatory variable rate rebates. Eli Lilly CEO David Ricks is cited as calling the approach a damaging signal to pharma, as the dispute connects trade policy to global innovation funding mechanisms.