US launches investigation into Germany's pharmaceutical pricing policies

US Trade Representative Jamieson Greer announced Thursday the launch of an investigation into Germany's pharmaceutical pricing policies, citing concerns that the country's reimbursement practices for innovative medicines may unfairly burden US companies and consumers.

The investigation, initiated under Section 301 of the Trade Act of 1974, will examine whether Germany's treatment of innovative pharmaceutical products is "unreasonable or discriminatory" and whether it restricts or burdens US commerce, the Office of the US Trade Representative (USTR) said in a statement.

According to the office, the action follows months of discussions between US and German officials aimed at resolving concerns over pharmaceutical pricing and reimbursement.

"President (Donald) Trump has made clear that American patients should not be shouldering a disproportionate share of global pharmaceutical research and development,” Greer said in the statement.

He expressed concern over reports that Germany is advancing legislation that could further reduce spending on innovative medicines.

"This is a serious step backwards at a time when our trading partners need to step up and start paying their fair share to fund innovative pharmaceutical research and development.

"We believe that the United States and Germany can find a path forward that expands access to the most innovative drugs for the German people while ensuring fair reimbursement for the pharmaceuticals made by American workers," he added.