Could Switzerland Be Next? U.S. Drug Pricing Pressure Expands Beyond Germany
U.S. scrutiny of German drug pricing could extend to Switzerland and France. Ron Lanton examines how trade investigations, pharmaceutical pricing agreements, and tariffs may affect market access, launch decisions, and international commercialization.
The United States is examining German pharmaceutical pricing practices under a trade investigation that could have consequences well beyond Germany. Switzerland, France, and other countries may face similar scrutiny.
For pharmaceutical companies, this is becoming a question of where to launch new medicines, how to negotiate prices, and whether decisions made in Europe could affect revenue in the United States.
I recently discussed these developments with Francesca Bruce at Pink Sheet, including which countries could face additional scrutiny and how governments might respond.
Why Switzerland Could Be Next
The U.S. Trade Representative opened a Section 301 investigation into German pharmaceutical pricing practices in June. The investigation includes Germany's AMNOG benefit assessments, mandatory rebates, and drug price freeze.
The concern is that these policies may place an unfair burden on American commerce.
Switzerland is another country worth watching.
In June, members of Congress raised concerns about Swiss proposals to reduce pharmaceutical spending. René Buholzer, CEO of the Swiss pharmaceutical industry association Interpharma, also warned that Switzerland could face scrutiny similar to Germany's.
Switzerland faces an additional complication. Unlike Germany and France, it is not an EU member and would need to manage any U.S. trade dispute through its own negotiations.
That does not leave Switzerland without options. It does mean the Swiss government and pharmaceutical industry may need to respond independently.
France Has Taken a Different Approach
France recently reached an agreement between its pharmaceutical pricing authority, CEPS, and the industry association Leem.
The agreement seeks to make pharmaceutical pricing more predictable, better recognize innovative medicines, and allow temporary higher prices in certain circumstances.
Those changes may help France respond to American concerns about European drug pricing.
They do not necessarily settle the matter.
The United States could still examine France's broader pricing framework, including pharmaceutical taxes, rebates, reimbursement delays, and patient access. Proposed increases in pharmaceutical taxes for 2027 could complicate France's efforts.
Could Germany Reach a Deal With Washington?
Germany may ultimately choose to negotiate rather than risk additional tariffs on pharmaceutical exports to the United States.
The UK-U.S. pharmaceutical trade agreement offers one possible model. Under that agreement, the UK committed to increasing pharmaceutical spending over time and improving market conditions for manufacturers.
Germany could consider a similar arrangement, particularly if the government concludes that a negotiated solution offers greater certainty for its pharmaceutical industry.
That outcome is far from guaranteed. Germany would still need to balance domestic healthcare spending against pressure from Washington.
What Pharmaceutical Companies Should Watch
Companies developing international launch and pricing strategies should pay attention to three questions.
First, will additional countries become targets of U.S. trade investigations?
Second, will European governments change pharmaceutical pricing or reimbursement policies to reduce the likelihood of trade disputes?
Third, how might those changes affect the timing of product launches, licensing agreements, and expected U.S. revenue?
The answers will matter to established pharmaceutical manufacturers and smaller biotechnology companies preparing for commercialization.
Pricing decisions made in one country no longer have consequences confined to that market. Companies must consider how those decisions could affect their business elsewhere.
The German investigation is still developing. Switzerland and France have not been established as the subjects of equivalent new investigations. For now, manufacturers should distinguish policy proposals and political warnings from formal government action.
Related reporting: Ron Lanton discussed these issues with Francesca Bruce in her October 21, 2026 Pink Sheet article, “USTR Investigation Into German Drug Pricing: Who Could Be Next?”.
Ron Lanton is Senior Partner and Global Strategist at Lanton, Lanton & Sosa Law PLLC, advising healthcare and life sciences organizations on regulatory, pharmaceutical policy, and international business matters.
This article is provided for general information and is not legal advice.