Lilly (LLY.US) publicly challenges the White House to oppose the "Most Favored Nation Drug Pricing" legislation.

On Wednesday, Eli Lilly (LLY.US) publicly opposed the inclusion of the "most favored nation drug pricing" mechanism in legislation, showing the growing rift between the pharmaceutical industry and the government. Eli Lilly CEO David Ricks stated in a media interview that the company does not support the White House's push to legislate the pricing mechanism. He pointed out that once it enters the legislative process in Congress, the policy could change, and the final outcome is difficult to predict. The "most favored nation drug price" policy aims to require that prescription drug prices in the United States be consistent with those in other developed countries. President Trump has long criticized high drug prices in the United States, arguing that American consumers are paying for cheaper drugs globally. Last year, more than a dozen pharmaceutical companies, including Eli Lilly, reached agreements with the government to offer drug prices in the U.S. market similar to those in other wealthy countries. Industry insiders had initially expected that these agreements would alleviate government pressure and prevent related policies from further escalating into legislation. However, over the past few months, the White House has begun pushing Congress to formally legislate certain aspects of the agreements. While the specific draft has not been made public, the government has been trying to gain support from pharmaceutical companies. In response, David Ricks expressed clear opposition. He warned that excessively lowering drug prices could harm the industry's long-term innovation capacity, stating, "Some people are more concerned about current price declines and ignore whether new drugs can still be developed in the future, as well as whether the United States can maintain a strong pharmaceutical industry and research capabilities." He also added that the company has clearly expressed concerns to the government and congressional leadership and will use all means to address what they consider "unreasonable policies." Analysts point out that the policy game surrounding drug prices is becoming an important uncertainty factor in the U.S. pharmaceutical industry. On one hand, the government is trying to reduce medical cost pressures, while on the other hand, pharmaceutical companies are concerned that pressure on profit margins will weaken research and development investment, thereby affecting the introduction of innovative drugs.