Why the MFN price battle is heading for court, not legislature
The U.S. administration is keen to sign up more companies to drug pricing deals, and mandatory rules are on the way. But how will the midterm elections affect these and other healthcare policy issues? At RBC’s Global Healthcare Conference, Hunter Hammond and Will Humphrey of Capstone’s healthcare group offered insights on the direction of policy for the rest of the year and beyond. Key PointsMandatory Most Favored Nation pricing rules are likely to be contested in court.The FDA’s initiatives to speed drug development are signals of its modernization intent.The U.S. is more likely to use incentives than sanctions to address mass in-licensing of Chinese innovation.The current program to extend access to GLP-1s could be a template for future breakthrough drugs.Democrat gains in the midterm elections would likely limit further hospital cuts.Introductions [00:08]Host Joe Coletti introduces highlights from the U.S. Healthcare Policy Panel at RBC’s Global Healthcare Conference, featuring Hunter Hammond and Will Humphrey of Capstone’s Healthcare Group. Midterm campaigning [00:40]In the run-up to the midterms, the U.S. administration will aim to focus on messaging about popular policies, such as cutting waste and fraud in Medicare and Medicaid.FDA changes [01:41]After turmoil in the FDA, new leadership is designed to promote stability. Recent moves to speed drug approvals are likely to continue and offer an important signal about FDA modernization. Chinese innovation [04:31]The administration may be uncomfortable with U.S. in-licensing of Chinese technologies, but it is more likely to respond with incentives than any attempt to block the practice.Drug pricing [06:17]Most Favored Nation mandatory pricing models have yet to be finalized and are likely to be challenged in court. Democrats will not support codification of MFN.Democrat priorities [08:08]Democratic gains in the midterms would have the effect of protecting hospitals from further cuts. Reform of 340B is unlikely, however.
