Arlington, VA-The American Consumer Institute (ACI) submitted comments opposing the codification of Most Favored Nation (MFN) pharmaceutical pricing, warning it would harm consumers by delaying drug launches, restricting access to medicines, and reducing incentives for innovation. Drawing on evidence from European reference pricing systems, ACI argued that such policies distort market dynamics, leading manufacturers to delay or avoid introducing new treatments in lower-priced markets to protect global pricing.
They emphasized that while MFN may offer short-term price reductions, these savings are temporary and come at the cost of reduced pharmaceutical research and long-term access. Instead, ACI urged policymakers to lower drug prices through increased competition, expanded access to generics and biosimilars, and greater price transparency to better serve patients without undermining innovation.
Read ACI’s comments here.
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The American Consumer Institute is a nonprofit education and research organization.