Pharmaceutical giant Pfizer is reconsidering its investment plans in Germany after the country’s government proposed new policies aimed at reducing drug costs, according to a letter from the company’s top executive.
Chief Executive Officer Albert Bourla addressed his concerns directly to Chancellor Friedrich Merz in correspondence dated June 9, which was obtained by Reuters and initially covered by German business publication Handelsblatt.
In his letter, Bourla expressed that the government’s proposed measures create uncertainty that undermines the pharmaceutical sector’s ability to make long-term financial commitments.
“As a result, we are reviewing our external engagements as well as the timing, scope, and future prioritization of certain planned investments in Germany,” the letter read.
Pfizer’s warning comes just days after other major pharmaceutical companies made similar decisions regarding their German operations. U.S. drugmaker Eli Lilly announced it would reduce its $2.3 billion German investment by half, while German pharmaceutical company Boehringer Ingelheim completely abandoned its €900 million investment plans. Both companies attributed their decisions to the government’s proposed healthcare cost-reduction initiatives.
