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Trump's Most Favored Nation Drug Pricing Plan Pegs U.S. Prices to Other Countries, Faces Legal Challenges and European Response

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Updated May 29, 2025, 07:04 PM

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The Trump administration has issued an executive order to implement a Most Favored Nation (MFN) drug pricing plan, which aims to peg U.S. drug prices to the lower prices available in other developed countries. This policy intends to reduce pharmaceutical costs in the United States. However, experts and analysts have raised concerns that the plan essentially imposes price controls under the guise of patriotism.

Critics argue that the MFN approach could punish American patients by slowing the development of next-generation life-saving treatments, potentially rationing care, and hindering pharmaceutical research and innovation. Additionally, there are worries about legal challenges and the behavior of drug manufacturers in response to the policy. Some analysts are also examining how Europe might respond, including the possibility of collective procurement strategies to counter the U.S. MFN policy. Advocates for patients and industry stakeholders suggest that abandoning the MFN order would better serve both domestic and global patients.

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Sources

pacificresearch.org(2)insights.citeline.com(2)newsmax.com(2)jamanetwork.com

Pacific Research Institute

@PacificResearch

"The laws of economics are stubborn things. If the Trump administration really wants to do the most good for patients in the United States and worldwide, they’ll scrap this most favored nation order," writes PRI's @SallyPipes. Read the op-ed here:

Sarah Karlin-Smith

@SarahKarlin

.@ScripFrancesca has been looking at how Europe is responding to Trump's most favored nation rx pricing idea. Here's one of the pieces:

JAMA

@JAMA_current

Viewpoint: President Trump's plan for most-favored-nation drug pricing to reduce US pharmaceutical costs faces challenges from manufacturer behavior, legal issues, and potential impacts on innovation.