Ali Pashazadeh, Treehill Partners CEO, recently contributed to a broadly published roundtable discussion about the United States Most Favored Nation pricing policy, examining its implications for patients, pharmaceutical innovation, and the broader healthcare ecosystem.
Patient-Centered Perspective: In discussions about drug pricing policy, Pashazadeh emphasized that “the only person I care about here is the patient.” Drawing on 30 years of medical experience, including living through MFN implementation in Europe, he cautioned that while cost-effectiveness frameworks optimize for the majority, the share of patients with unique needs can be left behind.
The Innovation Challenge: The current environment presents what Pashazadeh describes as a “perfect storm” for pharmaceutical innovation: no IPO market for five years, venture capitalists holding assets longer than usual, biotech funding at historic lows, and large pharma’s heavy reliance on biotech pipelines. Combined with pressures to reshore manufacturing, FDA transitions, and now MFN uncertainty, investors face too many unknowns to confidently price or back promising science.
Addressing Root Causes: Rather than focusing solely on price controls, Treehill Partners’ research reveals a more fundamental opportunity. After analyzing 1,200 companies, we found that only 5% had clarity on what they were selling, to whom, and at what price; and that more than half of mid/ late clinical stage drug failures are preventable by optimizing the development journey. By improving R&D efficiency and increasing success rates from the ground up, the industry could dramatically reduce the cost of innovation without regulatory compulsion.
Learning from International Experience: Dr Pashazadeh warned of the quality-versus-access tradeoff observed in markets like the UK, where cost-effectiveness optimization can lead to suboptimal care. When systems default to “good enough” treatments for the majority, individual patients requiring more tailored approaches may be denied care—even when that care could meaningfully extend their lives.
The Path Forward: Rather than leaving drug pricing reform solely to lawyers, policymakers, and academics, Dr Pashazadeh urged stakeholders to “clearly understand the sustainable outcomes you are aiming for, and then work backward to design the right inputs and strategies to achieve them.” The focus must remain on maximizing positive patient impact while minimizing unintended consequences.
Read the full roundtable discussion:
- Pharmaceutical Executive
- Pharmaceutical Commerce
- Pharmacy Times
- Drug Topics – Requires Subscription
- American Journal of Managed Care – Requires Subscription
The panel also featured perspectives from Brian Corvino (Deloitte), Neal Masia, PhD (EntityRisk), and George Van Antwerp (Prime Therapeutics), moderated by Ned Milenkovich, PharmD, JD.