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License Agreements

Potential Impacts of Most-Favored-Nation Executive Order on Ex-US License Agreements

July 15, 2025 | Posted by Ryan A. Murr; Branden C. Berns; Melanie E. Neary; Topic(s): FDA; Government Regulation; License Agreements; Trends and Insights

Introduction

On May 12, 2025, President Donald Trump signed an Executive Order titled “Delivering Most-Favored-Nation Prescription Drug Pricing to American Patients”. This order aims to address the perceived imbalance where the United States funds a significant portion of global pharmaceutical profits and pays high prices, while drug manufacturers offer deep discounts to access foreign markets, subsidizing those lower prices through higher prices in the United States. The stated purpose of the Executive Order is to ensure that Americans are not forced to pay almost three times more for the same medicines and have access to the most-favored-nation (MFN) price.

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