Overview

• President Trump's executive order directs federal agencies to establish and enforce 'Most Favored Nation' (MFN) pricing for prescription drugs within 30 days.
• The policy ties U.S. drug prices to the lowest rates in OECD nations, aiming to reduce domestic costs while bypassing insurers and pharmacy benefit managers.
• Industry groups like PhRMA predict up to $1 trillion in losses over a decade and are preparing legal challenges against the sweeping reforms.
• The U.S. Trade Representative has intensified scrutiny of India's intellectual property regime, raising concerns for Indian generic drug exporters who supply a third of U.S. generics.
• The order reframes drug pricing as an international trade issue, allowing U.S. trade actions against countries with discriminatory pharmaceutical practices.