Does anybody know if the Trump EO on instituting “most favored nation” guarantees on drugs sold in the US will affect prices in developing countries or just rich industrialized ones?
The text of the EO implies that it’s to address imbalances between the US and other developed countries (AI summary).
The Executive Order states that “Americans should not be forced to subsidize low-cost prescription drugs and biologics in other developed countries, and face overcharges for the same products in the United States.”
When describing potential importation of drugs, the order specifically mentions waivers that would be granted “to import prescription drugs on a case-by-case basis from developed nations with low-cost prescription drugs.”
The order also frames the issue as an “egregious imbalance” where the United States subsidizes drug costs in other wealthy countries, stating that Americans are “forced to pay almost three times more for the exact same medicines” compared to peer nations.
However, as stated, “most favored nation” would seem to imply that the US will only purchase drugs at the lowest prices available anywhere in the world.
Taken literally, this ~prices out poorer countries from any drugs simultaneously sold in the US and elsewhere.
To be clear, I think “MFN within “developed” countries” is still quite bad (the US has >5x the gdp per capita of the world bank cutoff for “high income countries” so in practice many people today will still be priced out, in the long run lower pharma profits → less new drug discovery → millions or more will die in the US and elsewhere from diseases like cancers and Alzheimer’s that are not preventable today). But there’s a limit to the badness if it’s just within developed countries whereas millions if not more people will die in the short term if the rest of the world is priced out of drugs if they can’t afford them at US prices.
(Politics, not very serious)
If I had a nickel for every time the corrupt leader of a fading nuclear superpower and his powerful, sociopathic and completely unelected henchman leader of a shadow government organization had an extreme and very public falling out with world-shaking implications, and this happened in June, I’d have two nickels.
Which isn’t a lot of money, but it’s kinda weird that it happened twice.