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Your grandparents aren’t the only snowbirds going to Florida this year. Canadian drugs could soon be on their way to the Sunshine State too.
What happened: Florida has become the first U.S. state to receive FDA approval to import pharmaceuticals from Canadian wholesalers. The state aims to buy HIV-AIDS, diabetes, hepatitis C, and psychiatric medications, estimating it will save up to US$180 million a year.
Catch-up: In 2020, states got the go-ahead to import drugs from Canada as long as the states could prove they were reducing consumer prices without adding safety risks. Several states have long fought for access to the Canadian drug market, where prices are cheaper due to federal and provincial price controls dictating how much suppliers can charge.
- A 2021 report found that U.S. prescription drug prices were, on average, 218% higher than Canadian prices.
Why it matters: Canadian health authorities are worried that U.S. access to Canadian drugs could cause or exacerbate shortages of vital medicines. Canada is already running short on over 19,500 drugs, and experts have seen drug shortages increase over the past decade.
- Florida plans to import diabetes drugs, which are notably in short supply. Low amounts of Ozempic are projected to last until at least March.
Yes, but: Canada won’t take this lying down. In 2020, the feds passed regulations barring foreign sales of certain drugs if sales would cause or worsen shortages. One expert told the NYT that Canada will create further restrictions if Florida starts taking too many of our meds.
Plus: American pharma has no interest in losing market share or the profits that come with high prices. It has fought hard against Canadian import plans, even suing over them. Meanwhile, Canadian suppliers have proven to be reluctant to cut U.S. supply deals.—QH