The German Pharmaceutical Industry Association (BPI) is concerned about the U.S. government’s introduction of a “Most Favoured Nation” (MFN) pricing model, which links the prices of prescription drugs in the U.S. to the lowest international prices. This measure, part of a U.S. initiative to control the cost of health care, could jeopardize free competition and destabilize global drug supply, according to BPI.

Linking U.S. prices to low international price levels could lead to pharmaceutical companies pulling out of low-price markets to avoid price distortions in the U.S. This could delay or prevent the introduction of innovative medicines in Europe, with significant implications for patient care.

Additional pressure is created by the recently agreed tariff regulation between the EU and the USA with a flat tariff of 15 percent on numerous products, including pharmaceutical products (except certain generics). These tariffs not only make direct trade more expensive, but also burden the entire supply chain with higher costs for intermediate products, auxiliary materials and packaging. The BPI sees this as a “risky double blow” for industry and the supply of medicines on both sides of the Atlantic.

The BPI calls for political measures to strengthen Europe as a pharmaceutical location and to ensure security of supply. This includes a reform of the more than 30 price regulation instruments in Germany, including the recently extended price moratorium and statutory manufacturer discounts that burden companies. The industry needs planning security and innovation-friendly framework conditions in order to secure health care as a strategic asset.

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Editor: X-Press Journalistenbüro GbR

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