The Trump Drug Plan: Buy Canadian

[Malthus]

From the news:

https://www.ctvnews.ca/health/u-s-to-set-up-plan-allowing-prescription-drugs-from-canada-1.4530955

Unless there is some coercive power requiring manufacturers to agree to this, I can tell you right now why this will not work.

Most drugs are manufactured by multinational companies who distribue the same drugs in various markets. The price of patented drugs tends to be significantly lower in Canada, largely because of federal price controls. Manufacturers are willing to sell the same product at a lower price, because even at the lower price, they still make money per unit sold.

However, they aren't willing to undercut themselves. If they start to face significant imports of cheaper drugs they themselves sold in Canada at the Canadian price, they will do one of the following things.

First, they will arrange by contract with their distributors and wholesalers that they must only sell the product in the territory to persons in the territory, and that territory being Canada; and that everyone down the chain of distribution must agree to these terms. Some already do this. The manufacturers have reasonably sophisticated ability to measure compliance. While there may be some "diversion", there is no way they would fail to discover large amounts of product being shipped to the US - recalling that the US population is ten times that of Canada.

Second, if that fails, threaten to pull out of the Canadian market to apply leverage on the Canadian government. Canadians already sometimes face drug shortages. Manufacturers are already unhappy with the arbitrary and excessive actions of the Canadian price control system (particularly for high priced "orphan" drugs). Canadians could still get such drugs, through the Special Access Program, but at US prices. The government here would presumably be persuaded to enact regulatory controls on cross-border exports that cannot benefit Canadians and may threaten Canadian supplies of drugs.

Finally, actually pull out of the Canadian market. They would be reluctant to do this, because that would allow the Canadian government to licence generic products; but for the highest priced drugs, that may be difficult (biologics etc.). Particularly for "orphan" drugs which may only have a handful of Canadian patients.
 

[crazy canuck]

Time to start an online drug company...

[HVC]

[Zoupa]

I had a few medical tourists over the years. What americans fail to realize is that in 99% of cases, the drugs they need require a prescription, and the prescription needs to be from a canadian doctor.

"Just call my CVS in Milwaukee!". Yeah, it doesn't work like that. Dumbass.

[Malthus]

I had a few medical tourists over the years. What americans fail to realize is that in 99% of cases, the drugs they need require a prescription, and the prescription needs to be from a canadian doctor.

"Just call my CVS in Milwaukee!". Yeah, it doesn't work like that. Dumbass.

Do you ever get docs in your province who specialize in co-signing US prescriptions to get around that?

[Josephus]

Time to start an online drug company...

We'll need a lawyer who specializes in pharmaceuticals. 

[Josquius]

Its the kind of shit brexiters come up with. Thinking they're being awesome and original by promoting sneaky work arounds that work for ordinary people but for very good reasons obviously wouldn't work if made official.

[Valmy]

Its the kind of shit brexiters come up with. Thinking they're being awesome and original by promoting sneaky work arounds that work for ordinary people but for very good reasons obviously wouldn't work if made official.

Yeah and if it is well known enough that politicians are recommending it well...

I had a few medical tourists over the years. What americans fail to realize is that in 99% of cases, the drugs they need require a prescription, and the prescription needs to be from a canadian doctor.

"Just call my CVS in Milwaukee!". Yeah, it doesn't work like that. Dumbass.

I always appreciated your stupid customer anecdotes.

[Malthus]

Its the kind of shit brexiters come up with. Thinking they're being awesome and original by promoting sneaky work arounds that work for ordinary people but for very good reasons obviously wouldn't work if made official.

I doubt they seriously intend it to work - for one, they didn't bother to actually consult the Canadian government on their plan.

A glance at the relative populations of the two nations would indicate a small problem with the notion of sneakily importing Canadian drugs ...

This is just grist for the US political mill - appearing to sock it to the gouging drug companies without actually socking it to them (by instituting anything like price controls, or even bargaining over prices by insurers - both of which occur everywhere else). Then, when it inevitably doesn't work, they can blame the drug companies and/or Canada.

[Valmy]

Is there no end of the evil of big pharma!!!11??

[derspiess]

AARP has been running radio commercials encouraging us to agree with Trump on some of his statements about prescription drug prices being too high.  Funny, I thought AARP was solidly anti-Trump.

[Malthus]

AARP has been running radio commercials encouraging us to agree with Trump on some of his statements about prescription drug prices being too high.  Funny, I thought AARP was solidly anti-Trump.

Automatically rejecting everything a political opponent says and taking the exact opposite position out of spite, even when you would otherwise agree with them - well, not everyone does that. It's more of a Trumpian Republican thing. 

[frunk]

AARP has been running radio commercials encouraging us to agree with Trump on some of his statements about prescription drug prices being too high.  Funny, I thought AARP was solidly anti-Trump.

Automatically rejecting everything a political opponent says and taking the exact opposite position out of spite, even when you would otherwise agree with them - well, not everyone does that. It's more of a Trumpian Republican thing. 

It's one of those attitudes that convinces people that Russians are more trustworthy than Democrats (or intelligence agencies).

[Zoupa]

I had a few medical tourists over the years. What americans fail to realize is that in 99% of cases, the drugs they need require a prescription, and the prescription needs to be from a canadian doctor.

"Just call my CVS in Milwaukee!". Yeah, it doesn't work like that. Dumbass.

Do you ever get docs in your province who specialize in co-signing US prescriptions to get around that?

No. I don't think the market is there for that kinda thing. Plus the local doctors would expose themselves to all sorts of disciplinary reviews/punishment from their professional order. Not worth it.

[merithyn]

So how are people getting their prescriptions in Canada now, then? We know it happens. A whole crowd just went across the border to get insulin.