The current U.S. presidential administration is pursuing a two-fold strategy to reduce drug costs in the United States. While it is unclear whether and how the administration’s proposals will be implemented, the proposed policies are likely to have a negative impact on the pharmaceutical industry and on our ability to receive adequate revenues for product candidates that receive approval. On the one hand, the administration has threatened to impose significant tariffs on pharmaceutical manufacturers that do not adopt pricing policies such as most favored nation pricing, which would tie the price of drugs in the United States to the lowest price in a group of other countries.
