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7h ago

Pharma R&D Seen Holding Steady Under MFN Pricing Push

The biggest price cuts are expected on direct-to-consumer portals, with limited immediate benefit for patients using insurance.

While MFN will see US drug prices reduced to match other countries, by them increasing elsewhere and using alternative models, it is unlikely that R&D will be heavily impacted. Image credit: LeoWolfert / Shutterstock.com
Charlotte Mooney/ProMarket

Overview

  • Industry analysis concludes MFN-linked reductions in U.S. drug prices are unlikely to significantly curtail overall pharmaceutical R&D spending.
  • Pfizer is the first to adopt MFN terms, covering Medicaid and TrumpRx, with large discounts routed through government and manufacturer direct-to-consumer channels.
  • President Trump says talks are ongoing with additional drugmakers, specifically naming Eli Lilly as a company in discussions.
  • Analysts expect the deepest discounts to accrue to cash-paying patients using DTC sites, with insured consumers likely seeing little change to out-of-pocket costs for now.
  • Experts propose cost-saving levers such as reallocating advertising budgets and modernizing development with AI, organoids and adaptive trials, while disagreeing on whether startups will be hurt or helped.