German pharma and medtech face investment cuts amid health reforms

German medical‑technology giant Siemens Healthineers is under pressure as planned reforms to the long‑term care insurance and broader health‑finance legislation force hospitals and insurers to tighten budgets. Analysts note that the policy squeeze could shift spending from capital‑intensive purchases toward service‑based, cost‑of‑ownership models, affecting the sector over several quarters.

At the same time, two major drug manufacturers, Eli Lilly and Boehringer Ingelheim, announced substantial reductions or cancellations of planned investments in Germany. Boehringer Ingelheim withdrew a €900 million program for 2027‑2030, while Eli Lilly cut the budget for its new Alzey plant by roughly half, from about €2.2 billion to €1.1 billion. A pharmaceutical‑industry expert cited these moves as “clear warning shots,” linking them to uncertainties created by the health‑care reform package and dynamic manufacturer rebate schemes that undermine planning certainty for the sector.