Why pharma giant Roche is putting German investments on hold
Germany’s bid to revive its struggling economy faces a fresh setback as a major pharmaceutical player raises concerns over the country’s business climate.
Frankfurt - The Swiss pharmaceutical company Roche is putting its future investments in Germany on hold due to the budget austerity policies of the federal government. Daniel Steiner, head of Roche Germany, stated to the Welt newspaper, "We have put all future investment decisions in Germany on hold for now." Speaking to Reuters, a spokesperson for Roche emphasized that past decisions, such as the over 600 million Euro expansion of the Bavarian Penzberg site, are not affected.
Steiner called for stable regulatory conditions, criticizing the government's approach to the healthcare system's cost stabilization law. He said, "Rather than addressing the structural issues of the healthcare system, the government is opting for short-term savings and additional burdens for industry." Roche's planned location clause to alleviate the burden on research and manufacturing pharmaceutical companies through reduced manufacturing discounts may only partially mitigate the law's negative consequences.
A comprehensive strategy is needed, according to Steiner. He also praised the US for its industrial policy, stating, "Europe should especially learn to pull itself together again." The German government's austerity plans recently caused significant unrest in the pharmaceutical sector. Eli Lilly announced in the summer that it would halve its planned 2.3 billion Euro investment in Germany, while Boehringer Ingelheim scrapped 900 million Euro in planned spending entirely.
Roche employs around 18,000 people in Germany and has invested nearly 3.8 billion Euros here since 2020.
Written by urgent.news from Handelsblatt's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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