The Trump administration is hinting at an upcoming rule aimed at implementing the President’s “most favored nation” drug pricing policy.
The proposed policy is titled “global benchmark for efficient drug pricing (GLOBE) model” and falls under the Department of Health and Human Services and its Centers for Medicare and Medicaid Services subagency, according to a government posting.
No details were given beyond the title. Two unnamed lobbyists reportedly told Reuters that they expect the rule to echo Trump’s previous MFN executive order signed during his first term.
The 2020 model was focused on reducing the price of 50 high-cost drugs covered under Medicare Part B to match the lowest price paid by a group of peer countries—that policy was blocked by courts for procedural reasons.
The teasing of the new rule comes as the Sept. 29 deadline for drugmakers to make binding commitments to align U.S. and international drug prices draws near. Trump presented the timeline in letters sent to 17 pharma CEOs in late July following an executive order on the issue in May.
Trump’s July letters called for the companies to offer MFN prices to “every single Medicaid patient.” The President has also demanded that companies “guarantee Medicare, Medicaid, and commercial payers receive MFN prices on all new drugs.”
Drugmakers have rolled out programs offering some of their meds directly to U.S. consumers at cheaper prices in anticipation of a pricing crackdown from the Trump administration. Bristol Myers Squibb just announced a plan to offer its plaque psoriasis oral med Sotyktu at a whopping 86% discount from its list price through the company’s direct-to-patient platform.
At the same time, the New Jersey pharma said it plans to charge its novel schizophrenia treatment, Cobenfy, in the U.K. at the same list price as in the U.S.
AstraZeneca unveiled its own direct-to-patient initiative on Friday, offering 70% and 51% discounts on its SGLT2 inhibitor Farxiga and asthma med Airsupra, respectively.
“[W]e should expect to see additional companies offer these programs to further appease the current administration,” analysts with William Blair said.