The choice before the Trump administration is whether to move forward with drug price controls that will sap the pharmaceutical sector of resources, energy, and ingenuity — or whether it will work to build a freer market for prescription drugs.
President Donald Trump gave American drug companies an ultimatum last month.
Either they agree to adopt foreign-style price controls, or the administration “will deploy every tool in [its] arsenal” to do it for them.
More specifically, the president asked drug firms to base U.S. drug prices for a given drug on the lowest price offered elsewhere in the developed world — a policy known as “most favored nation,” or MFN, pricing.
MFN was a disastrous idea when Trump first advanced it during his first term. It remains so today. The administration’s strong-armed tactics only make this situation worse.
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.
Trump Embraces Disastrous Most Favored Nation Drug Pricing
Sally C. Pipes
The choice before the Trump administration is whether to move forward with drug price controls that will sap the pharmaceutical sector of resources, energy, and ingenuity — or whether it will work to build a freer market for prescription drugs.
President Donald Trump gave American drug companies an ultimatum last month.
Either they agree to adopt foreign-style price controls, or the administration “will deploy every tool in [its] arsenal” to do it for them.
More specifically, the president asked drug firms to base U.S. drug prices for a given drug on the lowest price offered elsewhere in the developed world — a policy known as “most favored nation,” or MFN, pricing.
MFN was a disastrous idea when Trump first advanced it during his first term. It remains so today. The administration’s strong-armed tactics only make this situation worse.
Read the entire op-ed here:
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.