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15th Jun, 2026 12:00 AM
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German Government to Abandon Variable Drug Discounting Plans, Source Tells Reuters

BERLIN, June 15 (Reuters) - Germany's government is replacing plans that would have introduced variable discounts on pharmaceuticals, ⁠a government source told Reuters on Monday, following opposition from the industry to the proposal.

As part of ⁠the initial government plans, drug companies would have been obliged to offer price discounts ⁠that would vary depending on ‌the country's overall expenditures for drugs and on revenues of the healthcare system.

The variable discounts will be replaced with new discounts at a fixed level so that companies can plan ahead, the source said, without specifying the size of ‌the new discounts.

The federal health ministry said nothing had been decided ​yet and ‌declined to comment further on any "parliamentary ‌deliberations".

  The government in April unveiled plans for a wide-ranging overhaul of the country's statutory healthcare ⁠system to reduce a looming funding gap ‌by 20 billion euros ($23 ⁠billion) and to head off ​a hike in mandatory health insurance ‌premiums.

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That prompted criticism by groups representing physicians, patients and hospitals, as well as drug industry leaders, some of whom said they would slash existing or ​future investment plans in response.

The CEO of Eli ‌Lilly ‌CEO had said the U.S. maker of obesity drugs would halve its originally planned ‌investment of €2.3 billion ($2.7 ​billion) in Germany.

When asked for comment, the German association of innovative pharmaceutical companies, VFA, said it had previously "highlighted the importance of a thorough ⁠impact assessment" of the planned price cuts.  

Further considerations were now ‌up to the "democratic decision-making process", it added.

($1 = 0.8618 euros)

(Writing by Ludwig Burger;Editing by ​Thomas Seythal, Matthias Williams, Peter Graff)


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