US Medicare's New 'Most-Favored-Nation' Pricing Policy Could Raise International Medicine Prices
Researchers said 3 in 4 drugs studied would face higher losses in the US than sales in reference countries, increasing incentives to delay launches abroad.
- On Monday, a Lancet study warned that President Donald Trump's 'most-favored nation' pricing policy could reconfigure global pharmaceutical markets and delay new therapy launches abroad.
- To lower US drug costs, the administration tied Medicare prices to what 19 other wealthy nations pay, creating pilot programs GLOBE and GUARD to target $26 billion in savings.
- Analyzing 195 patented drugs, researchers concluded potential savings could drop by 80% due to secretive deals; 17 companies struck confidential agreements, cutting projected savings by 71%.
- Europe has seen a 35% fall in drug launches 10 months after the executive order; Alexander Natz, chief of biotech entrepreneurs' lobby Eucope, noted companies are reconsidering timelines.
- Economist Jaume Puig Junoy warned the policy may harm other countries without delivering large US benefits, while Kerstin Noelle Vokinger of the University of Zurich urged ensuring medicine availability is not delayed.
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US Medicare's new 'Most-Favored-Nation' pricing policy could raise international medicine prices
A new modeling study published in The Lancet suggests that US Medicare's new 'Most-Favored-Nation' pricing policy, which ties what Medicare pays for medicines to prices charged in other high-income countries, could push pharmaceutical manufacturers to raise prices or delay launches.
Last spring, Donald Trump ordered pharmaceutical companies to base drug pricing in the country on so-called most-favoured-nation pricing, in which prices are set against the lowest prices for the same drugs in other developed countries. According to a study by The Lancet, the policy has the potential to save the US $11.6 billion annually in drugs purchased by hospitals and pharmacies, and with wider application, the estimate could reach $46.5 bi…
Europe's patients may have to wait longer for new drugs because US plans for lower prices could lead corporations to later market launch.
Patients in Europe may have to wait longer for new medicines due to a measure taken by the Trump administration to lower drug prices in the United States. This is according to a new study published in The Lancet. To limit losses on the American market, companies could raise prices in some European countries, the researchers suggest.
What's the latest with the Trump admin's promise on lower drug prices in Medicaid?
The Trump admin's drug price deals came with a promise to offer lower prices in Medicaid. But the goalposts keep moving. Instead of all drugs, it's just one or two. And the deadlines for states to voluntarily sign on has been pushed back twice. So what's the status?
Berlin, which has so far insisted that drug pricing is an internal matter, is now seeking a possible compromise with the US.
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