Pharma's Big Defeat: US Rebate Proposal Hits The End Of The Road

White House will not move forward with a rebate proposal the drug industry supported as a way to lower patient drug spending.

A Dead End sign posted along a rural gravel road. - Image
HHS' proposed rebate rule has hit a dead end.

The White House will not move forward with a proposed rule to eliminate manufacturer rebates, delivering a defeat to the industry, which had lobbied heavily in favor of the policy change. It is the second big proposal from the Department of Health and Human Services blueprint on drug pricing to go up in smoke this month after a federal judge struck down the Trump Administration's rule requiring the disclosure of drug prices in TV ads.

Unlike with the direct-to-consumer (DTC) ad policy, industry advocated in favor of eliminating rebates, the payments it makes to payers...

Read the full article – start your free trial today!

Join thousands of industry professionals who rely on Scrip for daily insights

  • Start your 7-day free trial
  • Explore trusted news, analysis, and insights
  • Access comprehensive global coverage
  • Enjoy instant access – no credit card required

More from Drug Pricing

Europe’s Drugmakers Lament EU Pharma Package

 
• By 

EFPIA says reforms make the continent less attractive for innovative firms.

Stock Watch: Q1 Sales Trends And Forex Muddle Pharma Outlook

 
• By 

Pharma firms tended to downplay first-quarter trends in full-year guidance. However, raised guidance seems fragile amid ongoing foreign exchange effects and Medicare Part D redesign pressures.

HHS Intensifies Pressure On Pharma With MFN Pricing Benchmark

 

The Trump administration released more details on “most favored nation” price targets drug companies are expected to apply to US drug prices.

Lupin CEO On Trump’s Most Favored Nation Policy, Tariffs, Firm’s Five-Year Plan

 
• By 

Lupin CEO Vinita Gupta speaks on Trump’s most favored nation policy, the Inflation Reduction Act’s “pill penalty” and other developments in the US, a major market for the company. The company also outlines a five-year plan focused on complex generics and technology platforms.

More from Scrip

Citeline Japan Awards 2025 - Enter Now!

 

The 14 July deadline for the Citeline Japan Awards 2025 in Tokyo is approaching fast, so here's a reminder to take a look at the categories and criteria and be sure to get those submissions in by this date. Sponsorship opportunities and tables for the event are also available.

Crisis Or Opportunity? US MFN Policy Could Test Japan’s Appetite For Reforms

 
• By 

While the adoption of most favored nation drug pricing in the US stands to affect Japanese biopharma firms now heavily reliant on this market, it might also present an opportunity for pricing and policy reforms at home.

Biogen Lays Out Cadence For Felzartamab Data In Kidney Diseases

 

The first Phase III data for the CD38-targeting antibody is expected in 2027 in antibody-mediated rejection in kidney transplant patients, followed by other indications.