Baker McKenzie partners Julia Schieber and Oren Livne were recently featured in articles examining how the US administration's most-favored-nation (MFN) drug pricing initiative is influencing pharmaceutical licensing transactions, commercialization strategies and cross-border deal structures.
In an interview with APM Market Access, Julia and Oren explained that the prospect of US drug prices being tied to lower prices in other developed markets is introducing significant uncertainty into pharmaceutical transactions. They shared that policy is already affecting negotiations, with some split-territory licensing deals collapsing due to concerns that pricing decisions in Europe could negatively impact revenues in the United States.
Julia, a partner on Baker McKenzie’s Healthcare and Life Sciences practice in Zurich, noted that MFN concerns are making transactions involving separate US and European rights more difficult to execute and could ultimately discourage launches in lower-priced markets if companies seek to protect US pricing. She also observed that dealmakers are increasingly exploring mechanisms such as royalty renegotiation clauses and other contractual protections to address evolving pricing risks.
Oren, co-head of the Firm’s North America Healthcare and Life Sciences group, highlighted the broader implications for both new and existing licensing agreements, noting that many legacy deals were negotiated before MFN policies became a factor. He explained that companies are reassessing diligence obligations, launch commitments and royalty structures as they seek greater flexibility in an increasingly uncertain pricing environment.
In a recent Law360 story, Oren also pointed to growing concerns that MFN rules could encourage companies to prioritize US launches and alter traditional global commercialization strategies.
The media coverage follows Baker McKenzie's recent report examining the international impact of MFN drug pricing on life sciences transactions. The report explores how evolving US drug pricing policies may influence licensing arrangements, launch sequencing, valuation models and cross-border partnerships across the pharmaceutical industry.
Read the Law360 article.
Read the APM Market Access article.
In an interview with APM Market Access, Julia and Oren explained that the prospect of US drug prices being tied to lower prices in other developed markets is introducing significant uncertainty into pharmaceutical transactions. They shared that policy is already affecting negotiations, with some split-territory licensing deals collapsing due to concerns that pricing decisions in Europe could negatively impact revenues in the United States.
Julia, a partner on Baker McKenzie’s Healthcare and Life Sciences practice in Zurich, noted that MFN concerns are making transactions involving separate US and European rights more difficult to execute and could ultimately discourage launches in lower-priced markets if companies seek to protect US pricing. She also observed that dealmakers are increasingly exploring mechanisms such as royalty renegotiation clauses and other contractual protections to address evolving pricing risks.
Oren, co-head of the Firm’s North America Healthcare and Life Sciences group, highlighted the broader implications for both new and existing licensing agreements, noting that many legacy deals were negotiated before MFN policies became a factor. He explained that companies are reassessing diligence obligations, launch commitments and royalty structures as they seek greater flexibility in an increasingly uncertain pricing environment.
In a recent Law360 story, Oren also pointed to growing concerns that MFN rules could encourage companies to prioritize US launches and alter traditional global commercialization strategies.
The media coverage follows Baker McKenzie's recent report examining the international impact of MFN drug pricing on life sciences transactions. The report explores how evolving US drug pricing policies may influence licensing arrangements, launch sequencing, valuation models and cross-border partnerships across the pharmaceutical industry.
Read the Law360 article.
Read the APM Market Access article.
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