The German government approved new healthcare spending controls on August 18, 2026. These measures aim to save billions of euros by increasing mandatory discounts on specific medications.

Merck and other major pharmaceutical executives warned that the regulations will significantly impact industry operations. The new rules specifically increase mandatory rebates for patented drugs.

Industry leaders argue these cuts hinder domestic investment and the capacity for innovation. The German Federal Ministry of Health defended the measures as essential for stabilizing statutory health insurance finances.