Berlin – September 15, 2026 -- The European Commission is redrawing public procurement rules to treat supply security as a strategic asset, pressuring Germany to overhaul how statutory health insurers award pharmaceutical rebate contracts.
Brussels Moves to Rank Quality and Resilience Above Lowest Price
The Commission's draft directive would require public tenders to be awarded based on the best price-quality ratio rather than price alone, explicitly allowing supply security and resilience to factor into contract awards. The proposal also permits splitting large contracts into smaller lots to reduce dependency on single suppliers and diversify supply chains. For strategically sensitive procurement categories, the draft opens the door to preferential treatment for European or trade-aligned suppliers.
Industry Group Pharma Deutschland Demands Germany Follow Suit
Pharma Deutschland, representing roughly 400 member companies employing about 80,000 people in Germany, is calling on the government to use the EU reform as a mandate to overhaul domestic drug procurement. The association argues that in statutory health insurers' rebate contracts, the lowest bid price can no longer serve as the decisive criterion.
"Europe recognizes that supply security has value," said Dorothee Brakmann of Pharma Deutschland. "We now need to implement that same principle consistently in Germany. Resilience cannot remain a purely political demand -- it requires real economic incentives, and the procurement of medicines must be compensated accordingly."
Association Warns Against Policy Contradiction on Pharma Location Strategy
Brakmann said Germany cannot simultaneously push for a stronger pharmaceutical manufacturing base and more resilient supply chains while maintaining procurement systems where the lowest price remains the dominant factor. She argued that location policy, supply policy and procurement policy must be aligned rather than pursued separately.
Pharma Deutschland also cautioned that European preference clauses alone will not resolve underlying supply chain fragility. The group said diversifying sourcing routes and supplier bases is the more decisive lever for reducing dependency and strengthening resilience across pharmaceutical supply chains.
Trade Group Welcomes Commission's Openness to Harmonization Talks
Pharma Deutschland said the EU procurement reform creates an opportunity to shift competitive dynamics in drug procurement away from price-only selection toward criteria that also weigh quality, supply security and resilience. The association said it welcomes the Commission's willingness to pursue a long-overdue harmonization of procurement standards through dialogue.