Eli Lilly(LLY.US) publicly challenges the White House against legislation on "Most Favored Nation Drug Pricing"

Zhitong Caijing APP learned that on Wednesday, Eli Lilly (LLY.US) publicly opposed including the “most-favored-nation drug pricing” mechanism into law, indicating that the disagreement between the pharmaceutical industry and the government is widening.

During a media interview, Eli Lilly CEO David R. Denner stated that the company does not support the White House’s push to legislate the relevant pricing mechanism. He pointed out that once the policy enters the congressional legislative process, the content could change, and the final outcome would be unpredictable.

The so-called “most-favored-nation drug pricing” policy aims to require U.S. prescription drug prices to be aligned with those of other developed countries. President Donald Trump has long criticized U.S. drug prices as excessively high, arguing that American consumers are effectively paying for the lower prices of drugs in other countries. Last year, more than a dozen pharmaceutical companies, including Eli Lilly, reached agreements with the government to offer drug prices in the U.S. market similar to those in other wealthy nations.

Industry analysts initially expected that such agreements would ease government pressure and prevent the policy from being further legislated into law. However, in recent months, the White House has begun pushing Congress to formally codify parts of these agreements. Although the specific draft legislation has not yet been made public, the government has already sought to garner support from pharmaceutical companies.

In response, Denner expressed a clear opposition stance. He warned that excessively lowering drug prices could harm the industry’s long-term innovation capacity. “Some people care more about current price reductions and ignore whether new drugs can still be developed in the future, as well as whether the United States can maintain a strong pharmaceutical industry and R&D capabilities.”

He added that the company has clearly communicated its concerns to government and congressional leaders and will use all means to oppose what it considers an “unreasonable policy.”

Analysts point out that policy battles over drug prices are becoming a significant source of uncertainty for the U.S. pharmaceutical industry. On one hand, the government aims to reduce healthcare cost pressures; on the other hand, pharmaceutical companies worry that squeezed profit margins will weaken R&D investment, thereby impacting the launch of innovative drugs.