Stop Germany, Japan Free-Riding On U.S. Drug Innovation

NEWSWEEK

The developed world has long forced American patients to disproportionately shoulder the cost of pharmaceutical innovation. And President Donald Trump has had enough. He recently put our allies on notice—by launching a formal trade investigation into Germany's unfair drug pricing practices and signaling his readiness to formally investigate other nations if they refuse to change course.

Those investigations are desperately needed. Germany's government is poised to enact an even more aggressive price-setting scheme in the coming weeks, and Japan's leaders are considering similar steps.

The official probe into Germany's drug pricing practices will give Trump administration officials the leverage needed to bring Germany to the negotiating table and compel an end to its freeloading. The administration should now follow suit in Japan.

The time for warnings has passed. The administration should follow through. An official probe into both countries' drug pricing practices would give federal officials the authority and leverage needed to bring Germany and Japan to the negotiating table—and finally put an end to their freeloading.

Nearly every wealthy U.S. trading partner—including the United Kingdom, France and South Korea—uses government price controls to suppress payments for innovative U.S. medicines. But Germany and Japan are among the worst offenders.

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