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Manley Firm on Drug Price Caps

NEW YORK -- Canada won't bow to pressure from pharmaceutical companies to end price controls on prescription drugs to stem export sales to U.S. consumers, Finance Minister John Manley says.

Increasingly, U.S. residents are buying prescription drugs from Canada, where prices are cheaper because of government controls. Minnesota yesterday said it's inviting officials from other states, including Illinois and Iowa, to explore filling prescriptions in Canada to trim health-care costs.

The mounting purchases through Internet outlets and mail-order drugstores in Canada are leading New York-based Pfizer Inc., GlaxoSmithKline PLCand AstraZeneca PLCof Britain, Indianapolis-based Eli Lilly & Co. and other drug makers to retaliate by limiting shipments to Canada.

Price controls are "Canadian domestic policy intended to support Canadian consumers," Mr. Manley said in an interview with Bloomberg News. "I don't think that we have any intention of changing that policy."

There hasn't been pressure from U.S. officials to alter drug-pricing policy in Canada, Mr. Manley said. Canada's priority is to make sure there's enough medicine for its own citizens, he said.

Since 1987, a review board has set prices for all patented medications sold in Canada.

The price differences have drawn cities such as Springfield, Mass., and Burlington, Vt., to set up programs to buy drugs from Canada for municipal workers. The cities are flouting U.S. laws that make it illegal to import medications. 


This story originally came Globe & Mail...

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