Most Favored Nation Drug Pricing Will Flop, but What Wouldn’t?

President Trump issued an executive order requiring Most Favored Nation ( MFN ) pricing, resetting U.S. drug prices based on the lowest price that a drug company charges overseas.

This is Trump ’s second try at establishing MFN pricing, this is his second try.

Opponents argue that MFN rules are easily circumvented by drug companies who publish high list prices.

Wall Street and pharma leaders took Trump ’s MFN order in stride, consoling themselves that practical effects might be years away.

Writers: China 's fast-growing biotech capacity and exponential demand for anti-obesity GLP-1 drugs are shaking up the drug business and pricing.

They say China 's growing capabilities only increases the urgency to get wealthy nations to pay more for American drugs and compete with Chinese R&D.

Authors: We are the beneficiaries of decades-old R&D investments, but this bargain breaks down in the face of chronic disease.

Authors: Insurers like to spend as little as possible now, pouring bulk of health dollars into treating the most advanced conditions.

They say current approaches to drug pricing encourage incrementalism, but it is at odds with the way chronic disease works.

Writers: Drug companies should be required to disclose net price for each drug they sell.