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[BUSINESS] · Germany, Switzerland · 24 sources

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Roche suspends future investment decisions in Germany

Swiss pharmaceutical giant Roche has announced a temporary suspension of all future investment decisions in Germany. Daniel Steiners, head of Roche Germany, stated that recent political decisions have “destroyed a great deal of trust” within the pharmaceutical sector.

The decision stems from the GKV Contribution Rate Stabilization Act, a legislative reform passed in July aimed at containing rising statutory health insurance expenditures. Under this law, pharmaceutical companies must increase the mandatory rebate on most branded medicines from 7% to 15.5% starting next year. While the German government argues these measures are necessary to prevent increases in social security contributions, industry leaders contend the policy imposes undue financial burdens and undermines the country's attractiveness as a high-value industrial location.

This announcement coincides with a government-led investment summit in Berlin intended to attract international capital. Roche's move follows similar warnings from other major firms, including Eli Lilly, which halved its planned investment in Rhineland-Palatinate, and Boehringer Ingelheim, which canceled 900 million euros in planned expenditures. Roche currently employs approximately 18,600 people in Germany.

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Daniel Steiners · Eli Lilly · Friedrich Merz · Germany · Katherina Reiche · Merz Government · Roche

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