Trump MFN Pricing Plan Threatens Novartis, Japan
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- Trump rolled out an MFN pricing rule that links U.S. drug prices to 19 foreign markets, including Japan, for Medicare and Medicaid purchases.
- Vas Narasimhan warned Novartis that the policy creates a “very difficult situation” for manufacturers and could postpone novel drug launches in Europe and Japan.
- Japan fears drug makers may skip its market to keep U.S. prices high, risking delayed access to blockbuster treatments for Japanese patients.
Why it matters: Novartis and other innovators lose revenue as MFN pricing forces lower U.S. prices; patients in Japan and the U.S. face delayed access to breakthrough drugs, shrinking market launches and eroding R&D incentives.
