The U.S. Trade Representative has launched a Section 301 investigation into Germany’s drug pricing policies, arguing the country’s approach leaves the U.S. bearing a disproportionate share of biopharma R&D costs. USTR ambassador Jamieson Greer said Germany is fast-tracking legislation that would further reduce spending on innovative pharmaceuticals. The probe follows months of U.S.–Germany back-and-forth tied to a German draft plan aimed at saving more than €16 billion in healthcare spending, amid insurer deficit forecasts. Drugmakers have resisted, with Eli Lilly CEO David Ricks saying Germany’s actions send a “terrible signal” to the industry. If USTR finds U.S. interests are unreasonably affected, it could pursue tools such as confidential supplemental discounts or mandatory variable rate rebates. A public hearing is expected on Sept. 22 as the review moves forward.
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