Biotechnology company executives warn against Trump's most-favored-nation drug pricing plan

As Congress considers whether to implement President Trump's proposed most favored nation drug pricing policy, some biotech company executives have begun openly opposing the measure - even though the entire industry is generally concerned about the risks of publicly opposing the president. Ardelyx CEO Mike Raab said, "We need to have the courage to stand by our beliefs." He warned that Trump's drug pricing plan would make it harder for companies to raise funds. "Rather than staying anonymous, I am willing to speak out publicly: everyone needs to be cautious, because what you are doing could harm a very important engine of innovation that is unique to America." Ardelyx is a member of the "American Alliance for Midsize Biotechnology Companies." The alliance, composed of 10 commercial biotech companies, was established in November last year when Trump launched the most favored nation drug pricing plan. The plan would set drug prices in the United States at the lowest level among developed countries. The alliance believes that smaller market participants face greater risks compared to large pharmaceutical companies with diversified product portfolios. Executives of large pharmaceutical companies mostly remain silent, relying mainly on industry associations to oppose Trump's attempts to legislate related agreements and lobbying behind the scenes. This different strategy also reflects divisions within the industry on how to respond to Trump's policies.