The Trump administration has done a good job with  promoting a free-market approach in many of its policies. However, they have taken a completely different tact to reduce prescription drug prices in the U.S., a departure which will prove costly to American families and innovation. 

On Monday, President Donald Trump signed an executive order directing the administration to implement a “Most Favored Nation” policy for certain prescription drugs. MFN is a drug payment model that implements heavy handed price controls that will align U.S. drug prices with the lowest price offered in foreign countries, meaning the U.S. will pay the lowest price for pharmaceuticals when compared to other countries. This sounds great at face value, but will ultimately destroy the biopharmaceutical market, will harm patients, hinder future research and development, and result in fewer new life saving cures.