BOSTON — The Massachusetts Biotechnology Council (MassBio) has issued a strong statement opposing the recently announced executive order by former President Donald Trump to implement a “Most Favored Nation” (MFN) prescription drug pricing policy. The move, aimed at lowering U.S. drug prices by tying them to the rates paid in other developed nations, drew immediate criticism from the state’s leading biotech trade group.
MassBio President and CEO Kendalle Burlin O’Connell warned that the policy could stifle the innovation that has made the U.S.—and Massachusetts in particular—a global leader in the development of life-saving medicines.
“Today’s announcement casts a dark cloud over our ability to bring forward new hope for patients,” said O’Connell. “There is truth in the President’s criticism that foreign countries aren’t paying their fair share for medicines. But the solution cannot be to adopt the pricing frameworks of socialized healthcare systems that routinely limit access to innovative treatments.”
The MFN policy seeks to address international price disparities by benchmarking U.S. drug prices against those of countries that typically pay significantly less. Critics, however, argue that such a model would deter investment in research and development by reducing the financial incentives that drive innovation in the biotech and pharmaceutical sectors.
O’Connell emphasized that U.S. biotech companies have been at the forefront of global medical breakthroughs, citing advances in cancer therapies, Alzheimer’s research, and curative treatments once thought impossible. She expressed concern that implementing the MFN model could jeopardize the pipeline of future discoveries.
“We cannot afford to put warning lights in front of our innovation economy at a time when scientific possibility has never been greater,” she said. “This policy risks doing exactly that.”
While acknowledging the need to address international price imbalances, MassBio signaled its willingness to collaborate with the administration, Congress, and global stakeholders on alternative reforms that do not compromise patient access or biomedical progress.
Massachusetts is home to more than 1,000 biotech companies and has long been recognized as a global hub for pharmaceutical research and innovation. Industry leaders warn that the MFN pricing policy could undermine the state’s economic vitality and its leading role in the life sciences.
