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The Indiana Life Sciences Association (ILSA) strongly opposes the Administration’s proposed Most-Favored Nation (MFN) pricing model. This deeply flawed policy threatens the United States’ leadership in the global biopharmaceutical industry by undermining innovation, distorting international market dynamics, and surrendering U.S. pricing authority to foreign governments.
By tying U.S. drug prices to the lowest rates paid in other developed nations, the MFN model could disproportionately harm Indiana’s robust life sciences sector. The consequences would be far-reaching: reduced investment in the development of new therapies—especially for rare and complex diseases—diminished funding for R&D operations, and a direct threat to high-paying jobs across the state. It would also discourage investment in Indiana’s innovation hubs and biotech startups that depend on strong pharmaceutical partnerships.
Moreover, the policy effectively allows foreign governments—many of which undervalue medical innovation—to dictate U.S. drug pricing. Rather than promoting affordability, MFN pricing risks limiting treatment options, delaying access to new medicines, and stifling the development of future medical breakthroughs. Studies suggest that adopting European-style pricing in the U.S. could result in shorter, less healthy lives and trillions of dollars in lost economic value due to delayed or abandoned innovation.
ILSA urges Indiana’s Congressional delegation to stand with the more than 3,200 corporate members of the state’s $99 billion life sciences industry and reject this misguided attempt at government price control. The short-term savings promised by MFN pricing pale in comparison to the long-term costs to innovation, patient care, and economic growth.
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