The United States has launched a trade investigation into Germany's pharmaceutical pricing policies, arguing that the country's approach to innovative medicines may place an unfair burden on US patients and drug manufacturers.

The Office of the United States Trade Representative (USTR) announced the formal probe amid concerns that Germany is not providing sufficient support for spending on innovative pharmaceuticals.

US Trade Representative Jamieson Greer said reports suggesting that Germany is advancing legislation that could further reduce spending on innovative medicines were a source of particular concern.

"The reports that Germany is accelerating legislation that would further reduce spending on innovative medicines are especially troubling," Greer said.

The probe comes after months of talks between US and German officials failed to resolve Washington's concerns over pharmaceutical pricing, Reuters reported, citing comments by Greer.

Depending on the outcome of the investigation, the United States could consider a range of trade measures, including tariffs.

Greer also urged the German government to engage in negotiations over its pharmaceutical pricing framework.

Washington has long argued that lower drug prices in Europe allow foreign healthcare systems to benefit from pharmaceutical innovation while a larger share of research and development costs is borne by US patients and consumers.

The US administration has also expressed concern over Germany's planned healthcare reforms. The proposed measures are intended to reduce a multi-billion-euro deficit in the country's statutory health insurance system and include additional cost-saving contributions from the pharmaceutical industry.

The investigation will examine whether Germany's pricing and reimbursement policies create unfair conditions for US pharmaceutical companies and undermine incentives for medical innovation.(ILKHA)