Incubate Releases Statement on New Most Favored Nation Pricing Deadline
- Incubate Coalition
- 17 hours ago
- 2 min read
WASHINGTON, D.C. (July 31) -- Today, the Trump administration announced a 60-day deadline for 17 leading pharmaceutical manufacturers to offer Most Favored Nation (MFN) pricing for drugs, which would tie U.S. prescription drug prices to those in countries that impose strict price controls. The announcement calls for manufacturers to provide MFN prices for all drugs to all Medicaid patients and guarantee that Medicaid, Medicare, and commercial payers receive such prices for all newly launched drugs going forward.
Incubate executive director John Stanford issued the following statement:
"While other nations have adopted drug pricing policies that discourage innovation, the United States has long taken a different path -- one that rewards long-term investment in high-risk, high-impact research and development. That commitment has made the U.S. the world leader in scientific progress, developing more new drugs than the rest of the world combined and giving Americans access to breakthrough therapies earlier and in greater numbers than anywhere else.
"A Most Favored Nation policy to peg U.S. drug prices to those set by foreign governments will undermine the investment ecosystem that drives America's world-leading medical research and cede our leadership to China. Companies developing the next generation of therapies in fields like oncology, rare disease, and immunotherapy rely on predictable incentives to bring new treatments to patients. MFN-style mandates introduce uncertainty and risk chilling investment in the development of tomorrow's cures.
"We share the administration's goal of lowering drug costs for Americans. But reforms must preserve the conditions that power America's leadership in drug discovery, accelerate medical progress, and save lives."
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About Incubate
Incubate is a 501(c)(4) organization of venture capital firms representing the patient, corporate, and investment communities. Our primary aim is to educate policymakers on the role of venture capital in bringing promising treatments to patients in need.
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