May 5 (Reuters) – The Trump Administration said on Tuesday its “Most Favored Nation” (MFN) drug pricing deal was expected to generate $64.3 billion in federal and state savings in the next 10 years.
Under the voluntary MFN framework, manufacturers will offer all new drugs launched in the U.S. at prices comparable to those in other high‑income countries.
• The drug pricing policy applies across all markets in the U.S., inclusive of the private insurance market, and is also expected to generate $529 billion in domestic savings in the next 10 years across all markets, the White House said.
• To date, the administration has reached voluntary MFN pricing agreements with 17 pharma companies to slash prices of their medicines for the government’s Medicaid program and for cash payers.
• Moving forward, the administration expects to reach similar agreements with most manufacturers of sole-source brand name drugs and biologics in the nation, it said.
• As part of the voluntary MFN framework, the Trump administration secured price reductions for GLP-1 drugs, expanding Medicare coverage for obesity treatments.
• “Taken together, the MFN framework aims to equalize drug prices through the combination of decreases in U.S. prices and increases in prices faced by other developed countries,” the White House said in its statement.
(Reporting by Sneha S K in Bengaluru; Editing by Anil D’Silva)
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