On May 12, 2025, President Donald J. Trump signed Executive Order DELIVERING MOST-FAVORED-NATION PRESCRIPTION DRUG
PRICING TO AMERICAN PATIENTS that establishes a requirement for Most Favored Nations Prescription Drug Pricing.
Section 5 of the EO states: “Within 30 days of the date of this order, the Secretary shall, in coordination with the Assistant to the President for Domestic Policy, the Administrator for the Centers for Medicare and Medicaid Services, and other relevant executive department and agency (agency) officials, communicate most-favored-nation price targets to pharmaceutical manufacturers to bring prices for American patients in line with comparably developed nations.”
The intent is to obtain the lowest prices offered by drug companies in other wealthy countries, known as “most-favored-nation” (MFN) pricing, and to take action if those prices aren’t extended to Americans. It also calls for direct-to-consumer programs, drug importation from countries with lower costs, and antitrust enforcement against companies that block price competition.Continue reading