MFN; it stands for most favoured nations provision, it works by keeping a balance between the pro-competitive benefits and the anti-competitive harms. Anti-competitive harms comprise of discouraging price cutting and encouraging monopolies.
“Americans have paid the highest prices anywhere in the world for prescription drugs by far, far, many times the amount that other countries are paying. Ridiculous. I signed an executive order to make sure Americans pay no more for prescription, medications, than the lowest price of the same drug in other locations in developing nations. Today, Astrazeneca is committing to offer all of their prescription medications to Medicaid at Most Favoured Nations Prices. In other words, the lowest price anywhere in the world. That’s what we get. A move that will save American taxpayers hundreds of millions of dollars each year… I had the honour of being the first president in 28 years to lower drug prices during the course of the year. It was 1/8th of 1%. Now, drug prices are going to be going down 100%, 400%, 600%, a 1000% in some cases… for 28 years no one had done it.”
President Trump
Credit: The Union Herald, https://uk.practicallaw.thomsonreuters.com/8-382-3637?transitionType=Default&contextData=(sc.Default)&firstPage=true
Scriveners Online© 