US Drug Price Strategy Sparks Concerns Over European Medicine Access

President Donald Trump's administration is aggressively pushing pharmaceutical manufacturers to adopt a "most favoured nation" (MFN) pricing strategy that aligns U.S. drug prices with the lowest prices in other developed countries. Letters sent to 17 top drugmakers set a September deadline for compliance, threatening to use all available tools to combat what the administration calls abusive pricing practices. This policy aims to reduce the high cost of medicines in the U.S. but has raised concerns in Europe, especially in smaller countries like Ireland, about potential delays in drug launches and increased prices due to companies potentially avoiding low-price markets to protect profits in the U.S. Swiss pharmaceutical giant Novartis is responding by collaborating with the U.S. government to reduce the price gap and investing heavily in local manufacturing to mitigate tariff threats, which President Trump has proposed could reach up to 250% if prices don't drop. The conflict reflects broader tensions between pharmaceutical innovation incentives and global drug pricing fairness, with companies fearing that enforced lower prices could hinder investment in new medicines and regulators striving to control costs amid rising healthcare spending.