MFN Policy Triggers Major Shift in European Pharma Market Behavior
The United States has introduced a new Most Favored Nation (MFN) pricing policy under an executive order signed on May 12, 2025, aiming to reduce drug prices through international reference pricing. However, a GlobalData analysis published on March 25, 2026 reveals early signs of disruption in Europe, where pharmaceutical launches are declining and product withdrawals are rising. This shift highlights growing uncertainty in global pricing strategy and raises concerns about reduced patient access and changing launch priorities across European markets.
US MFN Pricing Policy Reshapes Global Drug Pricing Strategy
The US MFN policy uses International Reference Pricing (IRP) to benchmark drug prices against global markets and includes models like GENEROUS, GLOBE, and GUARD with European reference countries.
As a result, pharma companies are under pressure to adjust pricing strategies, launch timing, and market priorities across Europe.
Europe Sees Sharp Decline in Drug Launches After MFN Policy
GlobalData’s Price Intelligence (POLI) database shows a significant 35% drop in pharmaceutical launches across Europe after the introduction of the MFN policy. Furthermore, countries included in the US reference baskets experienced a 37% decline, while broader European markets saw an even steeper reduction of 43%.
Consequently, industry experts suggest that companies may be delaying launches in lower-priced markets to avoid affecting US pricing benchmarks. However, regulatory delays and reimbursement challenges may also contribute to this trend.
Pricing Pressure Delays Market Entry Decisions in Europe
Pharmaceutical companies appear increasingly cautious about launching products in Europe, especially in countries with lower price benchmarks. Therefore, strategic delays are emerging as firms try to protect global pricing stability. Additionally, uncertainty around MFN spillover effects is influencing licensing and partnership decisions.
Product Withdrawals Increase Across European Pharmaceutical Markets
Alongside reduced launches, Europe has also experienced a sharp increase in product withdrawals. According to GlobalData, branded medicine withdrawals rose by 43% in the ten months following the MFN announcement.
Moreover, withdrawal rates vary across regions, with some European countries showing increases of up to 40%. In contrast, core markets in the GENEROUS basket show a smaller rise of around 10%, suggesting uneven impact across Europe.
Pricing Conflicts Drive Strategic Product Withdrawals
In some cases, pharma companies withdraw products from lower-priced European markets to protect higher US pricing structures. For example, Amgen’s Repatha was withdrawn from Denmark, likely linked to MFN pricing pressure.
As a result, companies face a growing trade-off between European market access and US revenue protection.
Policy Pressure and Cost Control Add Further Market Complexity
European governments continue to tighten pharmaceutical spending controls. Therefore, pricing pressure is increasing from both US policy influence and local cost containment measures. This dual pressure may further accelerate withdrawal decisions in specific markets.
Early Evidence Shows Continued US-First Drug Launch Strategy
Despite policy changes, early data from 2025 indicates that 92% of newly approved drugs were first launched in the US. Furthermore, nearly all of these products have not yet reached other global markets.
Among non-US launches, Germany remains the most common entry point in Europe. However, the overall launch sequence still reflects a strong US-first strategy, suggesting limited immediate disruption.
MFN Policy Raises Long-Term Questions for Global Pharma Access
MFN aims to lower US drug prices, but early data shows fewer launches and more withdrawals in Europe. As a result, pharma companies may prioritize US pricing over global expansion, while long-term effects remain uncertain.
As MFN-driven pricing pressures reshape global drug launches, pharmaceutical companies must ensure their systems remain fully compliant, validated, and inspection-ready across all GMP-regulated environments.
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Source: GMP-Compliance.Org