The “Most Favored Nation” (MFN) pricing model would tie U.S. drug prices to those in foreign countries with different healthcare systems. Supporters say it could lower costs for patients, but industry leaders argue the plan would have damaging unintended consequences.

Illinois’ biopharmaceutical sector contributes more than $101 billion in total economic output, supports nearly 45,000 direct jobs, and underpins more than 263,000 total jobs statewide, according to industry data. The state is home to roughly 4,800 vendors tied to the sector, generating $7.93 billion in spending and hosting about 2,700 clinical trials involving nearly two million Illinois residents.

Critics say MFN targets the wrong problem. Instead of reforming pharmacy benefit managers (PBMs) and other middlemen they claim drive up drug costs, the policy would penalize companies that invest heavily in research and development. They warn it could push clinical trials and high-paying jobs overseas, giving an advantage to countries like China, which is rapidly expanding its own biopharmaceutical industry.

“Countries with similar price controls often approve only half the number of innovative medicines available in the U.S.,” opponents argue, warning that MFN could lead to fewer treatment options, longer wait times for new drugs, and reduced incentives for investment.

Industry advocates are calling for targeted reforms aimed at PBMs, demanding greater transparency and ensuring savings reach patients directly.

They are urging Illinois’ congressional delegation to reject the MFN proposal, saying it would protect jobs, preserve medical innovation, and maintain America’s competitive edge in drug development.