Canada makes drug price crackdown official over industry opposition

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The Canadian government on Friday announced final regulations to reduce patented drug prices it said would save Canadians CUS$13.2 billion (US$10 ...

TORONTO: The Canadian government on Friday announced final regulations to reduce patented drug prices it said would save Canadians CUS$13.2 billion over a decade, overriding heavy opposition from pharmaceutical companies.

Under the new rules, Canada will change the countries the federal drug price regulator, the Patented Medicine Prices Review Board , compares domestic prices to, dropping the United States and Switzerland where prices are highest, and let the agency consider the cost-effectiveness of new medicines. Petitpas Taylor said the new rules would lay the foundation for a new national pharmaceutical care program. Prime Minister Justin Trudeau's government is expected to announce a program to cover the cost of prescription drugs for some or all Canadians, but the program's scope is not yet clear.

Reuters reported in February that pharmaceutical lobby groups had offered to give up CUS$8.6 billion in revenue over 10 years, freeze prices or reduce the cost of treating rare diseases in order to head off the Canadian reforms.

 

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