Roche Keeps Future German Investment Decisions on Hold Amid Policy Dispute

Roche is keeping future investment decisions in Germany on hold amid a broader dispute over health care cost cuts, while projects it has already approved continue.

Dr. Daniel Steiners, head of Roche Pharma AG, reaffirmed the company’s position Oct. 19. Roche first paused decisions on future German investments during the summer. The hold applies to decisions still to be made, rather than projects already approved.

Those approved projects include a diagnostics production center in Penzberg, Bavaria. Roche plans to invest more than €600 million in the center.

One measure at issue is an increase in the mandatory manufacturer rebate on patent-protected medicines. The total rebate is set to rise to 15.5%, consisting of the existing 7% discount and an additional 8.5 percentage points. The measure is intended to stabilize Germany’s statutory health insurance finances.

Steiners said the government’s approach to reducing costs had weakened confidence in the pharmaceutical industry. Officials are working on a possible exemption tied to drug production and investment in Germany, but Steiners said it would address only part of Roche’s concerns.

The rebate increase is scheduled to take effect Jan. 1, 2027.