Trump urges Congress to codify most-favored-nation drug price policy after deals with pharma giants

Jan 15, 2026, 4:23:48 PM UTC(7 hours ago)
Impact: Medium
Trump urges Congress to codify most-favored-nation drug price policy after deals with pharma giants

Affected Assets

  • The White House announced significant drug price cuts for GLP-1 medications used for diabetes and obesity, specifically for Medicare and Medicaid beneficiaries, and through the new government platform TrumpRx.
  • The policy is based on the Most-Favored-Nation (MFN) principle, which aims to lower US drug prices to match the lowest prices paid by other developed nations.
  • Eli Lilly and Novo Nordisk, manufacturers of popular weight-loss and diabetes drugs, have agreed to MFN pricing for their new medications and to provide state Medicaid programs access to these reduced prices.
  • The President stated that Americans pay massively higher prices than other nations for the same drugs, effectively subsidizing socialism abroad with skyrocketing domestic prices.
  • Experts note that the administration's health reforms, including these voluntary deals with pharmaceutical companies, have created confusion and reshaped US health policy in the first year of the second term.

Sources

TRUMP CALLS ON CONGRESS TO PASS A LAW CODIFYING HIS MOST-FAVORED-NATION DRUG PRICE POLICY -WHITE HOUSE
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