What Lessons Can the US Learn from Europe’s Experience With International Reference Pricing?

The Trump administration has proposed international reference pricing (IRP) through a Most Favored Nations (MFN) mechanism to lower drug costs in the US. EU member countries have substantial experience with IRP, including very real unintended consequences. What lessons can the US learn from Europe’s substantial experience with pharmaceutical reference pricing? Dr. Sullivan will provide an overview (10 mins) of the proposed Most Favored Nations (MFN) policy of pharmaceutical reference pricing, the countries to be included in the basket and the proposed referencing mechanisms. He also will introduce the speakers and manage the discussion. Dr. Kanavos will describe how IRP is currently implemented in Europe, explain the benefits, limitations and unintended consequences of IRP. He will also describe how countries have developed ways to work around referencing through delayed entry and differential access, value assessment through clinical and/or cost-effectiveness, and confidential pricing agreements (10 mins). Dr. Acha will discuss how the pharmaceutical industry experience with IRP and how the industry has responded to IRP in Europe. (10 mins). Finally, Dr. Spiesser will discuss how EU countries may or may not be able and willing to raise pharmaceutical prices in the face of lower US prices, including any legal or trade policy implications (10 mins). The panelists will engage with the audience (25 mins) to address questions related to the proposed MFN policy and possible unintended consequences in international markets of a US international price referencing policy.