Drugmakers reassess Europe as Trump overhauls drug-pricing rules

The US president’s Most Favoured Nation drug-pricing policy has triggered an earthquake across Europe as pharmaceutical giants scramble to protect their bottom lines. As the first anniversary of Donald Trump’s Most Favoured Nation (MFN) drug-pricing executive order approaches, the policy, which is aimed at cutting US healthcare costs, is no longer just a protectionist threat on paper. The order, which effectively forces pharmaceutical companies to charge US consumers the same as in other wealthy countries, has started to gain teeth. Some 16 drug companies, including Swiss pharma giants Novartis and Roche (through its US subsidiary Genentech), have now signed confidential MFN deals with the US government exempting them from tariffs for three years according to some sources. As part of the deals, companies commit to align prices for new drugs with the lowest prices in a set of reference countries, which includes Switzerland. Some also agreed to boost investment in US research and ...