Acadia Pharmaceuticals CEO Catherine Owen Adams has joined with other industry leaders to form a lobbying group aimed at preventing the extension of Most Favored Nation (MFN) drug pricing policies to small biotech companies. The move comes as the Trump administration continues to focus on drug pricing, particularly targeting major pharmaceutical firms.
Currently, the MFN policy discussions have centered on 17 large pharmaceutical companies that received letters from the administration in July. There is no indication yet that smaller firms will be included in these measures.
“I don’t think the administration is out to target small pharma or small biotech particularly. And what we’re trying to do is make sure that they understand that a peanut butter blanket approach to MFN probably would not be the best for U.S. innovation,” Owen Adams said during an interview at the J.P. Morgan Healthcare Conference in San Francisco.
Concerns about how MFN drug pricing could affect small- and mid-cap biotechs have been echoed by others in the industry. Greg Graves, a senior partner at McKinsey’s life sciences practice, told BioSpace that such policies pose significant risks for these companies in 2026.
Owen Adams explained that she and about ten peers are working together to communicate their concerns directly to policymakers. “There’s a group of about 10 of us who are looking to specifically help the administration understand that if you disrupt small biotech innovation in the U.S. by putting MFN around us in terms of constraints, then you’re really suffocating U.S. innovation,” she said.
Owen Adams also participates in other advocacy groups, including those within BIO, with similar goals: ensuring any future MFN-style policy includes exemptions for smaller biotechs, especially those focused on rare diseases like Acadia. She pointed out that carve-outs were included for such companies under the Inflation Reduction Act.
“We’re continuing to be the voice of small biotech,” Owen Adams stated. “It’s really important that they don’t lump us in with the large pharma companies who have the ability to make different choices. They have much larger portfolios in which to weigh their decisions than us.”
The issue is particularly relevant for Acadia as it awaits a European decision on its Rett syndrome therapy Daybue by late March 2026. According to Owen Adams, changes in U.S. pricing could influence negotiations abroad: “If I can’t launch Daybue in Europe because of MFN, it’s a big, big impact on Acadia.” Despite this risk, she confirmed plans for moving forward with the European launch this year.
While some executives from major pharmaceutical firms have called for higher international prices rather than lower domestic ones—citing recent reimbursement adjustments agreed upon by the United Kingdom—Owen Adams expressed doubt about broader European willingness to increase payments: “I think it’s a nice try, but I’m not sure Europe’s ready to raise their prices just because of the situation or the direction from the U.S.”
She welcomed changes made by Britain after nearly three decades without adjustment: “It’s been a while, so their commitment to increase the NICE [National Institute for Health and Care Excellence] reimbursement levels is definitely positive.”
Despite ongoing preparations and advocacy efforts, Owen Adams does not believe there are immediate plans within the Trump administration targeting smaller biotechs with new policies: “In fact, she believes Trump and his team are ‘keen on U.S. innovation and ensuring that the biotech industry thrives here and has a good foothold.’”
She added that part of her conversations with officials involves warning against weakening American biotechnology competitiveness relative to China: “If we don’t have that innovation here, China’s going to move into the space real quick. And we’ve been very specific about how we talk about that and giving illustrative examples,” Owen Adams said.
“I’m hoping that the voice of smaller [and] middle-sized pharma is heard.”
