The U.S. Trade Representative (USTR) launched a Section 301 investigation into Germany’s drug pricing policies, arguing the country’s approach shifts an unfair share of global R&D costs onto the U.S. The probe was announced by USTR ambassador Jamieson Greer and cites concerns that Germany is fast-tracking legislation to further reduce spending on innovative pharmaceuticals. Greer said the investigation was prompted in part by reports that Germany’s measures could accelerate price reductions for innovative medicines. The USTR also flagged Germany’s broader healthcare spending review, including a draft plan aimed at saving more than €16 billion, according to the U.S. government. The action follows months of U.S.-Germany discussions and comes as major drugmakers have publicly pushed back. Eli Lilly CEO David Ricks said the changes send a “terrible signal,” and Lilly and Boehringer Ingelheim previously shelved plans to invest in German production tied to reform proposals, Reuters reported earlier.
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