Canada Concludes that the US Drug Market is Insane

Canada uses a sophisticated formula to set drug prices.

They have just updated the algorithm to eliminate US drug prices from their calculations because they are completely out of line.

Pharma is unamused, but they can go and Cheney themselves:

The Canadian government on Friday announced final regulations to reduce patented drug prices it said would save Canadians C$13.2 billion ($10 billion) over a decade, overriding heavy opposition from pharmaceutical companies.

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The new rules, described in a statement by Health Canada, were largely in line with a December 2017 draft. They came after months of delay prompted speculation the government would back down in the face of industry lobbying or simply run out of time before Canada’s October election.

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Under the new rules, Canada will change the countries the federal drug price regulator, the Patented Medicine Prices Review Board (PMPRB), 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.

It will also force drugmakers to disclose some confidential discounts to the PMPRB, which sets maximum prices.

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Global drugmakers, including Johnson & Johnson, Merck & Co and Amgen Inc, argued against the draft plan.

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.

Good.

Big pharma needs to be taken down.