Canadian Drug Imports Won’t Help U.S.: Study
A Canadian Health Policy Institute (CHPI) study says the U.S. won’t be able to manage healthcare costs by importing prescription drugs from Canada. CHPI CEO Brett Skinner looked at 2023 Canadian and American sales volumes for the 27 prescription drugs listed for importation in proposals submitted by Colorado and Florida to FDA for approval, CHPI says. He reportedly found that U.S. demand would deplete the entire Canadian stock of the drugs within 57 days on average.
“American consumers outnumber Canadian consumers by a ratio of more than 8 to 1,” he says. “Manufacturers will not over-supply the Canadian market, and the Canadian government will ban exports to prevent shortages.” He also reported that state importation programs would not generate the consumer savings required for FDA approval because Canadian distributors will mark up the price of exported drugs to capture the difference.
“Manufacturer list prices for patented medicines are capped by Canada’s federal government, but the regulations apply only to sales to Canadian customers,” Skinner explained. “Caps on wholesale and pharmacy mark-ups apply only to sales reimbursed by public drug plans. There are no regulations on the prices of exported drugs.”
Skinner says the importation plan has the tacit endorsement of both major party presidential candidates.
The study is available here.