MFN Drug Agreements Could Raise Prices Worldwide

Most Favored Nation (MFN) pricing could meaningfully cut federal drug spending, but much of those savings may evaporate as manufacturers respond by raising prices abroad or delaying launches in lower-priced markets, according to a modeling study published online today in The Lancet.¹ These new findings suggest the policy, originally conceived to close the gap between US and international drug prices, could instead export American-style pricing pressure outside the country’s borders.