What impact will Trump’s most-favored-nation approach have on US drug pricing?

Last month, the Trump Administration released an executive order aimed at lowering US drug pricing. The proposed policy takes a most-favored-nation (MFN) approach to pricing, requiring drug manufacturers to offer their products at the lowest international prices in different countries. Building on our prior analyses in late September, MME explored the possible implications of this new policy during an advisory board meeting with EU5 payers advisors (France, Germany, Italy, Spain, and the UK) to discuss how it might affect their respective health systems.

About half of payers were aware of the executive order prior to our discussion. Overall, a fairly broad spectrum of thoughts about the anticipated impact ranged from “could be quite drastic” to “not a big deal since we focus on net price.”  While some payers see the potential for significant disruption of their current prices and approach, others were skeptical of both the potential impact and the likelihood of implementation. The engagement on this issue was quite strong, no matter where they were on the “impact spectrum.”

We welcome you to schedule a virtual meeting with us to discuss US IRP, learn more about the feedback we received from our EU panel and our other analyses, and discuss actionable preparation strategies for your product(s). Contact us today.

For context, a summary of our analysis is below: MME assessed the potential global pricing impact for the MFN approach for ten leading #Medicare Part B drugs. Based on this approach, the overall expected price declines would be (on average) -68% (range -54% to -88%). You can read the full results from this analysis here.

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