U.S. Opens Drug Price Investigation Targeting Germany

The U.S. government announced on June 19 that it will investigate German pharmaceutical pricing practices. " The announcement came three days after the European Parliament approved the Turnberry agreement, which caps tariffs on European goods sold in the U.S. at 15 percent.

Officials said the new probe could lead to additional charges on German exports if the pricing practices are found to violate trade rules.

Background on the Dispute U.S. officials have argued for the past year and a half that European price controls force pharmaceutical companies to charge higher prices in the United States to recover research costs. European governments have so far declined to raise their own regulated drug prices.

The investigation gives the administration a new mechanism to press the issue with Germany and other EU member states. The Turnberry agreement was intended to stabilize trade relations, but the probe introduces uncertainty for German pharmaceutical exports.