What Impact Could Recent US Regulatory Actions Have on Global Pricing and Launches?

In early April, President Trump announced plans to impose 100% tariffs on branded pharmaceuticals. However, he also stated that exemptions would be made for pharmaceutical companies that had struck deals with him as part of his most-favored-nation (MFN) initiative.

This move is part of the president’s larger plan to reduce pharmaceutical prices for Americans. While his MFN efforts are targeting how drugs are priced in the US compared to foreign markets, he’s also pressuring pharmaceutical companies to bring more manufacturing to the United States.

While the goal is to reduce the cost burden on US patients, many in the industry are warning that there could be consequences, such as a reduction in innovation and complications for global launches. Dr. Stella Vnook, chair and acting CEO of Kaida BioPharma, spoke with Pharmaceutical Executive about the impact of MFN and other regulatory actions.

Pharmaceutical Executive: What impact could recent US regulatory actions have on global pricing and launches?
Dr. Stella Vnook: We're going to have to think of how complicated global launch scenarios will be. It's going to be restructured on where do we launch? How do we price it? Do we even launch in some of the countries that potentially could create disparity between certain global markets where drugs are available or not?

PE: What about the direct impact of MFN?
Vnook: Well, we already talked about and I mentioned some of the things what we could do in before we go down to MFN route. We understand that some of the larger pharmaceutical companies have agreed because there are trade-offs to be made on taxes and other benefits.