Last week, the FDA authorized the State of Florida to import pharmaceuticals from Canada. This move is aimed at potentially saving money for the US, as the price of branded pharmaceuticals in Canada is nearly three times the cost of identical pharmaceuticals in the US.
While there are some administrative issues to work out on the US side, the biggest challenge is Canada’s reluctance to sell. Canadian Health Minister Mark Holland expressed concern over the potential impact on the Canadian drug supply and stated that Canada will take measures to protect its health system from being exploited.
“There is no way we will allow any jurisdiction, be it a state or another foreign jurisdiction, to endanger the Canadian drug supply. That is not an appropriate solution to whatever challenges they may be facing… We’re going to do everything in our power to make sure that another country cannot be given the ability to pillage our health system for its own benefit.”
Canadian Health Minister Mark Holland
Canada’s concern is related to the potential depletion of their drug supply if the US were to import large quantities. This issue was raised previously in 2019, with Canada stating that they do not have enough supply to meet US demand and importing medicines from Canada would not significantly lower US prices.
Canada does not have a large enough supply of prescription drugs to meet U.S. demand, and importing medicines from Canada would not significantly lower U.S. prices… the Canadian drug supply would run out in 118 days if 40% of U.S. prescriptions were filled from Canada,” as reported by Reuters.
Source: https://www.reuters.com/idUSKBN1XB55E
FDA’s decision to allow importation from Canada raises concerns that pharmaceutical companies may opt to raise prices in Canada to mirror US levels, as the US is the largest market for most pharmaceuticals.
This is a developing story with much more to come, so stay tuned for further updates.
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