Delivering Most-Favored-Nation Prescription Drug Pricing to American Patients
Executive Order 2025-08876
|Signed on May 13, 2025
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What it means
This order aims to lower prescription drug prices for Americans by implementing "most-favored-nation" pricing. It directs officials to set price targets for pharmaceutical companies to match prices paid in other developed countries, which are often significantly lower.
Expected impact
- Lower prescription drug prices for American patients if pharmaceutical companies comply with the pricing targets
- Potential increase in direct-to-consumer purchasing programs from drug manufacturers
- Possible resistance from pharmaceutical companies who may face reduced profits in the U.S. market
- Diplomatic and trade tensions with foreign countries identified as "freeloading" on American pharmaceutical innovation
- Increased regulatory scrutiny of drug approvals and pharmaceutical export practices
- Potential legal challenges from pharmaceutical companies opposing price controls