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MFN pricing for medicines in USA stirring the hornet's nest: Dr Sunil Chiplunkar
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Nandita Vijayasimha, Bengaluru
May 15 , 2025
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There are two aggrieved parties due to the Most Favoured Nation (MFN) pricing for medicines in USA concept. One is the Big Pharma and the second is the Indian generic manufacturers and exporters. The Big Pharma is a huge lobby. In the past too, the efforts to reduce medicine prices have been stymied by them through legal challenge. Moreover, the R&D muscle of the US pharma and biotech sector gets affected if margins are not high and such is the pricing impact on US pharma. The Indian generic manufacturers will face some challenges but not too much since our prices are low already, said Dr Sunil Chiplunkar, vice president, business development, Group Pharmaceuticals.
The MFN prescription pricing for medicines in the US concept is stirring the hornet's nest! From a US citizen patient's point of view, it appears attractive, as it may not matter too much because of health insurance. Yet there will be some pressure due to the fact that there may not be 100 per cent health insurance in some cases, Dr Chiplunkar said.
The US government should focus on tweaking the Hatch Waxman Act or Drug Price Competition and Patent Term Restoration Act of 1984 and make drugs more accessible and affordable for US patients rather than opt for a 'price attack'. Focus should also be on identifying gaps of patient access to medicines in the US rather than a sledgehammer approach of price cuts, which are likely to rebound and a roll back of 'MFN pricing for medicines in US policy' will occur. The US government can also take a leaf from Jan Aushadi concept and have such subsidized pharmacy products for select drugs in US market. In this ‘price war’ finally, quality should not suffer anywhere, since medicines are potent chemicals. Impurities can cause havoc to the formulation consumer, Dr Chiplunkar told Pharmabiz.
USA has one of the highest prescription drug costs borne by Medicare and MFN pricing for medicines in USA will try to make the prices similar to countries like Germany. In this context, India should launch a marketing campaign for ‘Trusted Generics’ as 90% of American prescriptions are for generics. The challenge is data integrity and falsified pharmacokinetic data (BA/BE). The US will not compromise on quality though their focus is on affordability and saving monies related to Medicare. Indian pharma industry is resilient and will rise up to the opportunity and challenge of MFN pricing for medicines in US, said Dr Chiplunkar.
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