Roche has paused decisions on future investments in Germany amid a dispute over health care cost cuts, highlighting the tension between efforts to reduce insurance costs and drugmakers’ investment plans.
In an interview with Welt published Oct. 19, Daniel Steiners, head of Roche Pharma AG, reaffirmed a pause that began over the summer. The company has deferred decisions on projects still awaiting approval.
Germany’s parliament approved a higher mandatory manufacturer rebate July 10, with implementation set for Jan. 1, 2027. The total discount on patent-protected medicines supplied to statutory health insurers will rise from 7% to 15.5%, an increase of 8.5 percentage points.
The German Health Ministry estimates the increase will reduce insurers’ costs by about €12 billion through 2030, while drugmakers bear the larger discount. The ministry says health spending has been rising faster than income from insurance contributions, straining the system’s finances.
Steiners said the government’s approach to curbing costs had damaged confidence in the pharmaceutical industry. He argued that short-term measures left structural problems unaddressed and that a proposed exemption for businesses operating in Germany would meet only some of Roche’s concerns.
Previously approved Roche projects will proceed. A company spokesperson told Reuters the pause did not affect its investment at Penzberg in Bavaria, where Roche plans to spend more than €600 million on a diagnostics production center. Roche expects production there to begin in 2028.
A government expert panel proposed Sept. 29 that companies’ research, investment, production and employment in Germany determine whether they receive partial or full relief from the additional rebate. The proposal would make domestic activity a factor in how much of the added cost a manufacturer bears.
The government told Reuters it was reviewing the proposal, with no decision date announced. The approved rebate increase is due to take effect Jan. 1, 2027.
