Contrary to Chip Taylor I don't view the coming bill to allow imports from Canada to be the beginning of price controls in the US. I think it's the beginning of the end of price controls in Canada. The name brand medicines are really what this is all about. The drug companies haven't wanted to test NAFTA and have given in to the idea of lowering prices for Canada in order not to provoke the government there from invalidating their patents. But if it's the case of completely giving up their largest market and destroying their business versus trying their luck in court I predict that the majors will withdraw from the Canadian market unless Canada normalizes prices to resemble US levels.
This will somewhat lower US prices but the larger effect will likely be higher Canadian prices.
Posted by TMLutas at April 23, 2004 05:55 PM