Trump Administration Probes Germany Drug Price Controls After UK Agrees 25% Increase
Updated
Updated · Fox News · Sep 21
Trump Administration Probes Germany Drug Price Controls After UK Agrees 25% Increase
3 articles · Updated · Fox News · Sep 21
Summary
A June U.S. investigation into Germany's drug price controls is being framed as leverage to push Berlin toward paying more for innovative medicines developed by American companies.
The argument behind the probe is that foreign price caps, rebates and reimbursement delays shift drug-development costs onto U.S. patients, who account for roughly three-quarters of pharmaceutical profits and more than half of global R&D spending.
Trump recently secured nine pricing agreements with drugmakers, but the report argues deeper U.S. savings depend on forcing wealthy countries to shoulder more of the cost rather than importing their low-price systems.
Britain is cited as a model after agreeing last year to raise what it pays for new medicines by 25%, while Japan, France and Switzerland are identified as possible next targets.
One analysis says global pharmaceutical revenue would rise by more than $254 billion if other developed countries paid U.S.-level prices for new prescription drugs, potentially boosting research, jobs and future treatments.