New US Medicare Pricing Policies Could Reshape Global Pharmaceutical Markets
The study says drugmakers could delay launches in Europe as 3 in 4 medicines would trigger rebates larger than sales in reference countries.
- A new Lancet study published Monday warns President Donald Trump's 'most-favored nation' pricing policy could reconfigure global pharmaceutical markets, risking delayed therapy launches and price hikes in other countries.
- The administration's policy aims to lower costs for Medicare, the public insurance system covering 68 million Americans, by tying U.S. drug prices to 19 wealthy nations and requiring manufacturers to pay 'additional rebates' if prices exceed international benchmarks.
- While the White House projects $26 billion in Medicare savings, a new analysis suggests this figure could drop by 71% because 17 pharmaceutical companies secured 'secretive deals' with the administration, drastically reducing policy efficacy.
- European markets have seen drug launches fall by 35% in recent months, with Alexander Natz, chief of biotech entrepreneurs' lobby Eucope, noting companies now approach launches cautiously to avoid U.S. reference-pricing penalties.
- Patients and health systems face a 'lose-lose' scenario, experts warn, as manufacturers may prioritize U.S. revenue by delaying availability or raising prices elsewhere, potentially leaving patients waiting longer for critical treatments.
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Berlin, which has so far insisted that drug pricing is an internal matter, is now seeking a possible compromise with the US.
The US administration's strategy to reduce the price of medicines can lead pharmacists to review the way they launch and negotiate new treatments in Europe. Portugal, which uses prices from other European countries as a reference, can also feel the effects of this pressure.
Research has shown that although the Trump administration's most-favored-country drug price policy can lower drug prices in the US, pharmaceutical companies can have a negative impact on patients in other countries by raising drug prices in standard countries such as South Korea or delaying the launch of new drugs to cover losses.
TRUMP'S plan for cheaper drugs in the US threatens Europe with higher prices and delays in new therapies, warns a study in the journal The Lancet.
US push to cut drug prices could mean longer waits for European patients
Europe’s patients could face longer waits for some new medicines as US efforts to drive down drug prices risk encouraging pharmaceutical companies to delay launches in lower-price markets, according to a new modelling study.
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