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Americans for Tax Reform strongly opposes most-favored-nation (MFN) drug pricing. MFN is a government price-control scheme that imports failed foreign policies into the U.S. healthcare system. This hurts patients, stifles innovation, and weakens America’s global leadership in biotechnology.

Price controls won’t stop foreign freeloading. Instead, they reward it by giving foreign governments control of Americans’ health.

Americans for Tax Reform, with 52 other free market groups and advocates, released a coalition letter urging members of Congress to oppose the codification of most-favored-nation (MFN) drug pricing.

  • MFN weakens the United States’ position as the world’s biotech leader, ceding ground to China: We cannot handicap our pharmaceutical manufacturers while China advantages their own.
  • Price controls have NEVER worked: From Ancient Babylon to 21st century NYC, price controls have always resulted in devastation.
  • MFN would do nothing to stop foreign freeloading: Instead, it accepts foreign price controls as a benchmark rather than confronting the governments that impose them.
  • MFN would reduce access to new cures: Of the 0.05 percent of drugs that make it from drug discovery to clinical trials, only 12 percent are approved by the FDA. Increasing the risk in this already-risky industry will devastate innovation.

ATR recently released a report titled “Will Washington Hand the Future of Biotech to Beijing?” examining China’s biotech ambitions and how U.S. policy decisions, like MFN, risk eroding America’s global advantage in medical innovation.

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