US pharmaceutical giant Pfizer has pulled out of a meeting with German Chancellor Friedrich Merz over plans to reform the health care system, warning that planned investments could be scrapped.
In a letter to Merz seen by dpa on Wednesday, Pfizer chief executive Albert Bourla said he would "not be able to participate" in the Invest in Germany Summit in October.
The announcement comes after the German Cabinet last month passed a package of measures drafted by Health Minister Nina Warken, including proposals to introduce higher mandatory rebates for pharmaceutical companies, aiming to close a €16.3 billion ($18.8 billion) gap in government funding.
Several firms have outlined their opposition to the measure, including Pfizer's rival Eli Lilly and Germany's Boehringer, with the Bundestag, the German lower house of parliament, set to discuss the plans on Friday.
Pfizer's withdrawal from the meeting is a further sign of the sector's anger. The company has more than 3,000 employees in Germany.
"The government's current policy proposals targeting the pharmaceutical sector are altering pricing and market conditions in ways that are making the environment increasingly difficult for sustainable, long-term investment, and are calling into question the predictability required for such decisions in Germany," Bourla wrote.
The company is reviewing "external engagements as well as the timing, scope, and future prioritization of certain planned investments in Germany," he said, adding: "It is increasingly difficult to reconcile the current policy direction with the ambition to position Germany as a globally competitive location for biopharmaceutical innovation."
