Trump's Executive Order on MFN Drugs to Boost Generics & Biosimilars Adoption

U.S. President Donald Trump's Executive Order on Most Favored Nation (MFN), proposed to reduce prescription drug cost inequalities, targets the high prices of innovative drugs in the U.S. compared to other developed nations like Europe and Australia.

Chairperson of Biocon Group, Kiran Mazumdar Shaw, explained this executive order is not planned to affect generics or biosimilars, as it offers affordable alternatives under the Affordable Care Act (ACA). This order doesn't seek to line up U.S. drug prices with those of developing countries, such as India.

Biocon becomes a crucial player that takes up a role in this transformation. The Executive Order reassures the development of generics and biosimilars to compete with expensive brand-name drugs, promoting greater access to affordable medicines. This also presents a new way for the U.S. to import lower-cost drugs from other countries for the first time.

Shaw added that the Trump administration's focus is on pouring the broader adoption of generics and biosimilars, a policy the President has been supporting for years. She highlighted that negotiating drug prices is more effective in controlling costs than imposing tariffs on pharmaceutical exports, as seen in previous administrations.

President of the Federation of Pharma Entrepreneurs (FOPE) and Director at Embiotic Labs, Harish K Jain, clarified that Trump's target on high-priced innovative and branded drugs. He stated that Indian generics exports are unlikely to be knowingly impacted for now, as India continues to hold an advantage over countries like Ireland in terms of cost-effective production.

He also urged Indian pharmaceutical companies to capitalize on this move, using it as an opportunity to enhance their value proposition through innovation and research, and there is potential for India's generic drug market to expand, particularly if regulatory clearances for New Drug Applications (NDAs) and Abbreviated New Drug Applications (ANDAs) are advanced.

Manoj Palrecha, President of the Karnataka Drugs and Pharmaceutical Manufacturers Association (KDPMA) and Managing Director of Lake Chemicals, specified that the U.S. government's move to bring drug obtaining prices in line with those of other regulated markets could put pressure on manufacturers.