US Medicare's 'Most-Favored-Nation' Pricing Policy Could Impact Global Pharmaceutical Markets

A new modeling study published in The Lancet suggests that the US Medicare's 'Most-Favored-Nation' pricing policy, which links Medicare drug prices to those in other high-income countries, could incentivize pharmaceutical manufacturers to raise prices or delay medicine launches globally. The study indicates that for many medicines, potential Medicare savings could be significantly higher than the drug's annual sales in the reference country, creating a strong incentive for manufacturers to adjust their international pricing and launch strategies.