New US Medicare pricing policies could reshape global pharmaceutical markets
A new analysis says confidential deals with 17 drugmakers could erase most of the White House’s projected Medicare savings.
- On Monday, a pioneering study published in The Lancet warned that US drug pricing policies could reconfigure global pharmaceutical markets, potentially forcing companies to raise prices abroad and delay therapy launches in other nations.
- President Donald Trump pushed the 'most-favored nation' policy to align Medicare drug prices with the lowest levels among 19 developed nations, aiming to stop the United States from having the world's most expensive prescription drugs.
- Researchers analyzing 195 patented drugs worth $87.9 billion warned that pharmaceutical companies might delay market launches in low-price countries to avoid penalties, as firms could lose more money by lowering US prices than their total sales abroad.
- European Patients Forum warned patients could wait longer for treatments, while Alexander Natz, chief of the biotech lobby Eucope, said companies are reconsidering launch strategies in Europe amid the policy pressure.
- Confidential deals struck by 17 companies with the administration could cut potential savings by 71%, as these firms remain excluded from the policy rules and undermine the stated goal of delivering $26 billion in Medicare savings.
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Research has shown that although the Trump administration's most-favored-country drug price policy can lower drug prices in the US, pharmaceutical companies can have a negative impact on patients in other countries by raising drug prices in standard countries such as South Korea or delaying the launch of new drugs to cover losses.
TRUMP'S plan for cheaper drugs in the US threatens Europe with higher prices and delays in new therapies, warns a study in the journal The Lancet.
US push to cut drug prices could mean longer waits for European patients
Europe’s patients could face longer waits for some new medicines as US efforts to drive down drug prices risk encouraging pharmaceutical companies to delay launches in lower-price markets, according to a new modelling study.
New US Medicare pricing policies could reshape global pharmaceutical markets
A new modeling study published in The Lancet suggests that U.S. Medicare's new "Most-Favored-Nation" pricing policy, which ties what Medicare pays for medicines to prices charged in other high-income countries, could push pharmaceutical manufacturers to raise prices or delay launches. For about three in four medicines studied, the resulting Medicare savings would be worth almost four times that medicine's entire annual sales in the country used to set its price, potentially giving manufacturers a strong incentive to change how they price and launch products outside the U.S.
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