{"id":494967,"date":"2026-06-16T04:36:17","date_gmt":"2026-06-16T04:36:17","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/494967\/"},"modified":"2026-06-16T04:36:17","modified_gmt":"2026-06-16T04:36:17","slug":"germany-rethinking-drug-price-reforms-after-lilly-boehringer-withdraw-investments-reuters","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/494967\/","title":{"rendered":"Germany rethinking drug price reforms after Lilly, Boehringer withdraw investments: Reuters"},"content":{"rendered":"

The German government is dropping plans to introduce variable discounts on medicines after receiving pushback from industry, Reuters reported<\/a> Monday.<\/p>\n

An anonymous government source told the publication the government will replace variable discounts with fixed reductions to help drugmakers plan for the shift. The original proposal tied the discount rate to Germany\u2019s overall spending on medicines and to healthcare revenues, limiting visibility into the figure. Details of the size of the new, fixed discounts have yet to emerge.<\/p>\n

The report comes less than two weeks after Boehringer Ingelheim and Eli Lilly pulled back<\/a> from planned investments in Germany in response to the government\u2019s proposed healthcare reforms. BioSpace did not receive an immediate response from Lilly to questions about whether the company will reconsider its actions in light of the government\u2019s proposed move to a fixed discount rate. Boehringer, meanwhile, replied that it has \u201cno comment\u201d to the same questions. <\/p>\n

Hundreds of jobs and billions of euros rest on the outcomes of the companies\u2019 decisions. At Boehringer, concerns over the proposed German reforms led management to ax plans to invest \u20ac900 million ($1 billion) from 2027 to 2030 to expand its infrastructure in the country.<\/p>\n

On the day Boehringer disclosed its investment U-turn, Lilly CEO Dave Ricks revealed that his company was halving a planned investment in a German plant. Lilly originally intended to invest \u20ac2.3 billion ($2.7 billion) in a German injectable manufacturing site to support the supply of its GLP-1 drugs Zepbound and Mounjaro.<\/p>\n

The healthcare reforms drove Lilly to scale back its investment. Under the revised plan, Lilly will open the site as planned next year but run the plant at half the intended capacity. The change will involve a halving of the site\u2019s planned headcount, which was originally 1,000. Lilly\u2019s revised plan reflects Ricks\u2019 belief that Germany\u2019s reforms would make it the least supportive country in Europe.<\/p>\n

<\/p>\n

\"USA,<\/p>\n

<\/a><\/p>\n

\n With Germany moving to curb healthcare spending, Eli Lilly and Boehringer Ingelheim have rethought plans to invest in facilities, including a manufacturing plant for GLP-1 drugs.\n <\/p>\n

June 4, 2026<\/p>\n

\u00a0\u00b7\u00a0<\/p>\n

2 min read<\/p>\n

\u00a0\u00b7\u00a0<\/p>\n

Last week, Pfizer CEO Albert Bourla applied further pressure to the German government. Bourla told the government that Pfizer was reviewing its \u201cexternal engagements as well as the timing, scope and future prioritization \u2060of certain planned investments in Germany,\u201d Reuters reported<\/a>.<\/p>\n

The series of actions by drugmakers echoes the industry\u2019s response to a drug pricing and market access dispute in the U.K. The long-running argument escalated in September when Merck pulled out<\/a> of a $1.3 billion project and AstraZeneca paused<\/a> plans to invest around $270 million in an R&D site. The U.K. later acceded<\/a> to some of the industry\u2019s requests in its trade deal with the U.S.<\/p>\n","protected":false},"excerpt":{"rendered":"The German government is dropping plans to introduce variable discounts on medicines after receiving pushback from industry, Reuters…\n","protected":false},"author":2,"featured_media":494968,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[163,521,85,46],"class_list":["post-494967","post","type-post","status-publish","format-standard","has-post-thumbnail","category-healthcare","tag-health","tag-healthcare","tag-il","tag-israel"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/494967","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=494967"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/494967\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/494968"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=494967"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=494967"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=494967"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}