
Lilly Statement: MFN Pricing Targeted for September 1, Pushback on Pharma Tariffs
The company was one of 17 to receive letters from the White House on July 31 detailing the steps each company must take to bring prescription drug prices down for Americans.
Clock ticking on Trump’s demand
On July 31, Trump sent letters to Lilly and 16 other pharmaceutical companies (
- MFN prices must be offered to every Medicaid patient.
- Manufacturers must specify that they will not offer better prices for new drugs to other developed nations than those offered in the US.
- Efforts should be made to eliminate middlemen and sell medicines directly to patients, provided at prices no higher than the best price available in developed nations.
- Raising of international prices should be supported by trade policy, with increased revenues from abroad directly reinvested into lowering prices for Americans (2).
The letters said that if the companies failed to act within 60 days of the date issued, the federal government would “deploy every tool in our arsenal to protect American families from continued abusive drug pricing practices” (2).
Lilly among first to respond
While Lilly conceded that the “rebalancing” of drug prices desired by the White House may be difficult, essentially meaning prices paid by governments and health systems in other developed markets such as in Europe need to increase, the company said it supports the Trump administration’s goal of keeping the US the leading global destination for biopharmaceutical research and manufacturing (1).
Lilly said it has “intensified efforts” in 2025 to align prices across developed countries, particularly in Europe, and has an agreement in place with the government of the United Kingdom to raise the list price of its Mounjaro (tirzepatide), an injectable used to treat type 2 diabetes, while maintaining access for patients (1). In the US, the company said it has scaled its LillyDirect delivery service to enable more affordable access to Lilly medicines, including another tirzepatide treatment, Zepbound, additionally slashing insulin prices by 70% with a monthly cap of $35.
The disclosures from Lilly are some of the most public statements made by any of the 17 companies that received letters from the White House on July 31. While not directly related to the MFN pricing demands, GSK announced on Aug. 8 a $370 million settlement it reached with
That announcement came three days after the US Department of Health and Human Services (HHS)
Resisting and counteracting tariff shifts
Meanwhile, one of the other companies included in the July 31 series of letters, AbbVie, said on Aug. 12 that it would be
Earlier in August, Trump threatened eventual tariffs of 250% on pharmaceuticals imported into the US, redoubling efforts to have those materials made within the country. The president theorized that the tariffs would initially start small, then possibly increase to 150% by the 12-month mark, with the maximum amount reached at 18 months (6).
Even though Lilly said in its detailing of price reduction efforts that it supported the Trump administration in those goals, the company pushed back against such a drastic spike on imports.
“Lilly opposes tariffs on pharmaceutical products, including on the medicines we make,” the company said in its press release (1). “Medicines have long been excluded from tariffs because of their life‑saving nature. Broad tariffs would raise costs, limit patient access, and undermine American leadership, especially for companies already investing heavily in domestic manufacturing. We urge the administration and Congress to prioritize strategic incentives that strengthen US manufacturing and supply‑chain resilience without sacrificing access, affordability, innovation, or American leadership.”
Throughout 2025, Pharmaceutical Technology® Group has been tracking the responses of industry leaders and experts to the shifting nature of US tariffs across all markets. Compilations of their opinions at the
References
1. Eli Lilly and Company.
2. The White House.
3. GSK.
4. HHS.
5. AbbVie.
6. Alltucker, K.
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