On Wednesday, Eli Lilly (LLY.US) openly opposed efforts to codify a "most favored nation" drug pricing mechanism into law, signaling a widening rift between the pharmaceutical industry and the government. In a media interview, Eli Lilly's CEO David Ricks stated that the company does not support the White House's push to legislate the related pricing mechanism. He pointed out that once the process moves into congressional legislation, the policy content could change, making the final outcome difficult to predict. The so-called "most favored nation" pricing policy aims to align U.S. prescription drug prices with those in other developed countries. U.S. President Donald Trump has long criticized high drug prices in America, arguing that U.S. consumers are subsidizing low-cost drugs for the rest of the world. Last year, more than ten pharmaceutical companies, including Eli Lilly, reached an agreement with the government, consenting to offer drug prices in the U.S. market that are similar to those in other wealthy nations. The industry had initially expected that such agreements would alleviate government pressure and prevent related policies from being further elevated into law. However, in recent months, the White House has begun pushing Congress to formally legislate parts of the agreement. Although the specific draft has not been made public, the administration has attempted to secure support from pharmaceutical companies. In response, David Ricks expressed a clear opposing stance. He warned that excessively lowering drug prices could harm the industry's long-term innovation capacity, stating, "Some people are more concerned about immediate price reductions and overlook whether new drugs can be developed in the future, and whether the U.S. can maintain a strong pharmaceutical industry and research capabilities." He added that the company has clearly communicated its concerns to government and congressional leadership and will use all available means to counter what it deems "unreasonable policies." Analysts note that policy battles over drug pricing are becoming a significant uncertainty factor for the U.S. pharmaceutical industry. On one hand, the government seeks to reduce healthcare cost pressures; on the other, pharmaceutical companies fear that squeezed profit margins will weaken R&D investment, thereby impacting the launch of innovative drugs.
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