U.S. drug pricing policy delays medicine rollouts in Canada

Nearly 50 life-extending or life-saving drugs have been delayed or cancelled for launch in Canada over the past year, including some already approved by Health Canada. Industry experts suggest this trend is driven by the United States’ Most Favoured Nation (MFN) policy.

Under the MFN policy, the U.S. aims to ensure Americans pay the lowest available price for prescription drugs. Canada is one of eight countries identified as benefiting from significantly lower drug prices compared to the U.S. Dr. Bettina Hamelin, CEO of Innovative Medicines Canada, stated that the policy creates upward pressure on prices, arguing that nations with lower costs are not paying their “fair share of innovation.”

Pharmaceutical companies report that bringing a new medication to market costs an average of $3.5 billion and takes ten to fifteen years. Much of this investment is currently recouped through higher prices in the U.S. market. Medical professionals, including Dr. Michelle Hladunewich of Sunnybrook Health Sciences, have warned that cutting-edge medications for rare diseases may become unavailable to Canadians due to these economic shifts.