The U.S. Department of Health and Human Services (HHS) announced that it is taking immediate action to implement President Donald Trump’s executive order, titled “Delivering Most-Favored-Nation Prescription Drug Pricing to American Patients.” This move aims to lower prescription drug costs for U.S. patients by aligning prices with those in economically comparable countries.
HHS Expectations
HHS expects all pharmaceutical manufacturers to commit to aligning the pricing of brand-name products sold in the U.S. market—where there is no competition from generic or biosimilar drugs—with the lowest prices in a group of economically comparable countries. This initiative seeks to ensure that American patients benefit from more affordable drug prices.
MFN Target Price
The Most Favored Nation (MFN) target price will match the lowest price among Organisation for Economic Co-operation and Development (OECD) countries whose per capita GDP is at least 60% of that of the United States. This approach aims to leverage international pricing benchmarks to drive down costs for American consumers.-Fineline Info & Tech
