President Trump’s most-favored-nation order could have impacts on the entire world.

Eli Lilly issued a public statement¹ that addresses concerns regarding drug prices and innovation in the United States. While the statement doesn’t directly cite the President’s order on drug pricing, it addresses multiple issues directly related to the order. It also comments on other regulatory issues impacting drug pricing, such as the tariffs being discussed for pharmaceutical goods.

How is the pharmaceutical industry reacting to the President's MFN order?

According to the statement, Lilly shares the goal of the current administration of keeping the United States as the “world’s leading destination for biopharmaceutical research and manufacturing.” At the same time, it says it supports the administration’s other goal of bringing US pharmaceutical drug prices more in line with what the rest of the world pays. To achieve both goals, Lilly says that drug prices in other markets may have to increase to make up for lowering them in the US.

“Medicine prices should reflect their value for patients, health systems, and society,” the statement reads. “In recent months, we have intensified efforts to align prices across developed countries, especially in Europe. We are continuing to work with certain governments and expect to make any necessary pricing adjustments by September 1, while providing continued access for patients. This includes an agreement with the UK government to increase the list price of Mounjaro, while maintaining access for NHS patients.”

Pharmaceutical Executive reported on the Mounjaro price increase, which will see the list price increase by about 170%. However, even after the increase, it will still be significantly lower in cost than the current price in the US.

Lilly states that it’s taken the following steps to reduce drug costs in the US:

• Scaling Lilly Direct to provide access to affordable medications
• Reducing insulin prices by 70%
• Capping what patient costs for insulin at $35

Lilly argues that there are other reasons for high drug prices in the US other than innovation and breakthrough medicine research. Lilly cites the following causes:

• The US system is complex and involved multiple cross subsidies
• Abuse of government programs, such as 340B
• Insurance cost-sharing burdens being placed on patients

If these issues aren’t addressed, Lilly argues that it will be difficult to fully address the issue of high drug costs in the US.

The statement continues, “Lilly opposes tariffs on pharmaceutical products, including on the medicines we make. Medicines have long been excluded from tariffs because of their life‑saving nature. Broad tariffs would raise costs, limit patient access, and undermine American leadership, especially for companies already investing heavily in domestic manufacturing. We urge the administration and Congress to prioritize strategic incentives that strengthen U.S. manufacturing and supply‑chain resilience without sacrificing access, affordability, innovation, or American leadership.”

Lilly is one of 17 pharma companies specifically called out by President Trump for not working hard enough to meet the requirements of his MFN executive order. According to the order, pharma companies are expected to price drugs in the US as-low-as, if not lower, than the lowest price in other regions or countries. Reports have surfaced that some pharma companies have had discussions with the White House about raising drug costs in other regions to meet the order’s requirements, although those reports did not state which companies were involved in these discussions.

President Trump also plans to place tariffs on pharmaceutical goods based on the results of an investigation looking into whether certain imports (including pharma goods) are a threat to national security. However, recent reporting says that the results of that investigation and an announcement about the tariffs are still weeks away, at best.

Source

Statement: America’s leading role in biopharmaceutical innovation. Eli Lilly. August 14, 2025. https://investor.lilly.com/news-releases/news-release-details/statement-americas-leading-role-biopharmaceutical-innovation