Roche moves future Germany investments 'on hold'

Roche Suspends Future Investments in Germany Over Healthcare Policy Concerns

Roche's Investment Review Amid German Healthcare Policy Changes

FRANKFURT, Oct 19 (Reuters) - Swiss drugmaker Roche is reviewing all future investments in Germany over healthcare cost-cutting policies, the company's Germany chief said in an interview with newspaper Welt that was published on Monday.

Company Statement on Investment Suspension

"We have put all future investment decisions in Germany on hold for the time being," said Daniel Steiners, head of Roche Germany, adding that for the pharmaceutical industry, policy makers had "recently destroyed a lot of trust".

Criticism of Policy Approach

• Steiners said that instead of tackling the structural problems of the statutory health insurance system, policy makers are focusing on short-term savings and placing additional burdens on the industry

Location Clause and Legislative Impact

• A so-called ‘location clause’, which could exempt domestically producing pharmaceutical companies from manufacturer discounts, would only partially offset the negative effects of the legislation, needed is a comprehensive strategy, he added

Industry-Wide Impact and Other Companies' Responses

• Following proposed legislation in Germany to cap rapidly growing costs in the statutory health ​insurance system, Eli Lilly had in June already said it would halve its planned €2.3 billion ($2.57 billion) investments in the country

Current Investments Not Affected

• Planned investments like the more than €600 million expansion of the site in Penzberg, Bavaria, are not impacted by the reviews, a company spokesperson told Reuters

($1 = 0.8934 euros)

(Reporting by Patricia Weiss, writing by Marleen Kaesebier)