Researchers are drawing attention to a May 12 executive order signed by United States president Donald Trump, which says U.S. drug prices must not exceed the lowest price in other nations. Rosalie Wyonch, associate director of research with the C.D. Howe Institute says the policy could massively increase drug prices, if the drugs in question are available in Canada at all.
The policy creates a significant incentive for pharmaceutical companies to delay launching new medicines in lower priced markets. “To preserve high prices in the United States, pharmaceutical companies might also choose to delay launching new medicines in Canada and other markets.”
The open letter to Canada’s ministers of health and ministers of finance encourages governments to monitor drug supply and track the launch of new products in the United States and other reference countries, and also to monitor prices to ensure that the Patented Medicine Prices Review Board (PMPRB) mandate does not have large, unintended consequences including reduced access to new medicines. (The PMPRB benchmarks retail prices in reference countries to determine maximum legally allowable prices.)
“The effect in Canada would be increasing costs for hospitals, public and private insurance plans and potentially reduced access to medicines in the future,” they write. “Increasing costs will have the greatest effect on the uninsured and underinsured in Canada, making addressing gaps in coverage more urgent.”
