Trump Drug Pricing Policy Delays Medicine Launches in Europe
Drug companies are delaying the launch of new medicines in Europe because of Trump's Most Favored Nation pricing policy. The policy requires U.S. drug prices to match lower prices in other countries. European medicine launches have declined since Trump signed the executive order in May 2025.
Pharmaceutical companies are increasingly delaying the release of new medicines in European markets due to concerns about Trump's Most Favored Nation (MFN) drug pricing policy. The policy, implemented through executive order in May 2025, requires U.S. drug prices to match the lowest prices found in other developed countries.
Data shows that the average number of new medicine launches in Europe has declined since the MFN order took effect. Lionel Collet, head of France's HAS health authority, confirmed that drugmakers are increasingly postponing decisions about launching drugs in France.
The policy creates a dilemma for pharmaceutical companies. If they sell drugs at Europe's typically lower prices, they must offer the same prices in the lucrative U.S. market. To avoid this, many companies are either delaying European launches or choosing not to sell certain drugs there at all.
Experts warn this strategy could backfire, potentially leading to higher drug prices in the U.S. as well. The pharmaceutical industry's top lobbying group has called Trump's efforts to expand these pricing deals problematic for patient access.
Patients in Europe may have to wait longer to get new treatments for serious diseases. Drug companies are avoiding markets with lower prices because they fear it will force them to cut U.S. prices too. This could limit access to life-saving medicines worldwide.
Watch for more delays in European drug launches as companies navigate the pricing policy. Patient advocacy groups may push back on restricted access.
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