Swiss pharmaceutical giant Roche stated on Monday that it would put expansion in Germany on hold, coinciding with the start of a government-backed investment summit in Berlin.
Daniel Steiners, head of Roche Germany, informed Die Welt newspaper that all future investment decisions in the country are on hold for the time being. Steiners noted that recent political decisions have destroyed a great deal of trust within the pharmaceutical sector.
In July, German lawmakers passed a bill requiring pharmaceutical companies to cut prices to control costs within the statutory health insurance system. Beginning next year, drugmakers must grant a 15.5% rebate on most branded medicines, an increase from the current rate of 7%.
In June, the United States cited these reforms when launching a tariff probe into Germany, pointing to what it termed Berlin's persistent underpayment for innovative pharmaceutical products.
Economy Minister Katherina Reiche, responding to Steiners' comments, stated that the measures were necessary to keep social security contributions under control. At the same time, she praised the enormous contributions of the pharmaceutical industry.
Roche's announcement coincided with a government summit in Berlin scheduled for Monday and Tuesday, which is intended to attract business interest to Europe's largest economy. Germany's economy has recorded little growth since the end of 2022 due to subdued domestic demand, US tariffs, and increasing Chinese competition abroad.
Roland Busch, head of industrial giant Siemens, spoke alongside Reiche at a press conference and called Roche's announcement a signal. Busch remarked that companies are simply stating they will invest elsewhere if investment conditions in Germany are not right, adding that such a response is understandable.
