Incubate Responds to White House Executive Order on Drug Pricing

WASHINGTON (May 12) -- Today, President Trump signed an executive order to tie U.S. drug prices to the lowest prices paid in other countries, also known as a "Most Favored Nation" model. This sweeping measure will chill the biotech investment that powers breakthrough medical discoveries.

Incubate's executive director, John Stanford, issued the following statement:

"Today's executive order is an ominous sign to investors, scientists, and most of all, patients hoping for new breakthroughs. President Trump is precisely correct in saying that foreign countries are not properly valuing U.S. innovation and the benefits to their populations. But importing foreign price controls is not the solution.

"Importing foreign price controls is a step backward for American innovation, and American patients. If the government imposes international price caps, there will be lower investment in scientific research and fewer new medicines for people living with cancer, Alzheimer’s, and other devastating diseases.

"We will continue to share with the Trump administration and legislators the importance of a market-based solution and broader healthcare reforms that address the real reasons why Americans are paying more for medicines."

Incubate Policy Lab also published a policy brief, The Cost of Paying Other Countries' Drug Prices, analyzing the effects of adopting a "Most Favored Nation" model. The brief examines how international price caps would decrease U.S. biotech investment and, reduce access to medicines, and cede ground to competitors like China -- all while failing to compel other countries to pay more for U.S. medicines.

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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.