What specific German pharmaceutical pricing policies are under US scrutiny?

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US Investigates Germany Over Pharmaceutical Pricing Practices

The United States has initiated an investigation into Germany's pharmaceutical pricing policies and related practices, citing concerns that these measures may constitute unreasonable or discriminatory underpayment for innovative products, thereby burdening or restricting U.S. commerce. This probe, launched under Section 301 of the Trade Act of 1974, aims to scrutinise the mechanisms Germany employs in setting prices for pharmaceuticals.
Allegations of Unfair Pricing Policies

Evidence suggests Germany employs pricing policies and practices deemed unfair concerning innovative pharmaceutical products. These measures are seen as leading to persistent underpayment for these vital medicines. The U.S. Trade Representative's office has charged that these practices create an imbalance in the global pharmaceutical market.
Impact on Research and Development Investment

A key concern raised by the U.S. is the potential impact of Germany's pricing policies on research and development (R&D) investment. Reduced revenue stemming from these pricing practices appears to contribute to a decrease in funding for R&D. This, in turn, leads to a situation where the United States bears a disproportionate share of global R&D costs for innovative pharmaceuticals.
Scrutiny of Legislative Plans

The investigation also encompasses Germany's intentions to expedite legislation that could further curtail its spending on innovative pharmaceuticals. This move is viewed with concern by U.S. officials, who argue that it could exacerbate the existing issues related to pricing and R&D investment. The U.S. Trade Representative's office will gather further comments and hold a hearing in September as part of this ongoing investigation.

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What specific German pharmaceutical pricing policies are under US scrutiny?

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