International price tags could slash American drug costs in half

A single dose of a specialized biologic drug can cost a patient in the United States $5,000, while a patient in Japan or Germany pays just $1,500 for the same vial from the same factory. This disparity exists because most nations cap drug prices based on their economic value, while the U.S. market traditionally allows manufacturers to set their own list prices. To bridge this gap, a policy known as most-favored-nation pricing would peg American costs to the lowest prices found in other wealthy countries.