BMS CEO Warns Trump’s MFN Drug Pricing Could Cut EPS Up to 50% Amid US-China Split and Roche Investment Threats

The Most Favored Nation (MFN) drug pricing policy, revived under former President Trump, continues to generate debate among industry leaders and experts. Critics describe the policy as "lazy" and "misguided," highlighting that similar strict price controls in Europe have led to limited availability of many oncology drugs, raising concerns about patient access. Despite these criticisms, price reforms in the U.S. are seen as politically inevitable.

Chris Boerner, CEO of Bristol-Myers Squibb (BMS), warned at the Financial Times US Pharma & Biotech Summit that U.S. biopharma leadership faces risks due to drug pricing pressures, agency budget cuts, and competition from China. The MFN plan could potentially reduce earnings per share (EPS) by up to 50%, with unclear scope and enforcement limited to an executive order. Additionally, the ongoing US-China pharmaceutical split may drive drug costs up by 50%. Industry discussions also focus on the 30-day ultimatum for pharma companies, a 180-day negotiation period, potential drug reimportation, and threats from companies like Roche to reduce U.S. investments. These developments underscore the complex challenges facing the U.S. pharmaceutical sector amid evolving pricing policies and international competition.