Letter to the Editor: Comments on Drug Pricing Regulation Article
January 17, 2007
Dear Editor,
David Gratzer's suggestion that U.S. adoption of price controls on pharmaceuticals would put a halt to research and development funding (Our prescription drug supply in danger? Take a pill -- Jan. 17) is purely speculative and unsubstantiated. Industry profits might well feel short-term effects. However, there is absolutely no proof that research spending would suffer and thus lead to a dwindling of new medications. At the other end of the spectrum, Dr. Gratzer raises the option of loosening Canadian price controls, presumably to bring them in line with those in the U.S. Surely this is the tail wagging the dog. Please let's remember that Canada is only 3% of the global market, while the U.S. dominates the market. Our practice of setting prices at the median of seven other industrialized countries is very reasonable. Loosening our price controls would likely have a nominal impact internationally, but would have a huge, adverse impact on the health of Canadians, putting medications further out of their reach.
Louise Binder, Chair, Best Medicines Coalition
Dear Editor,
David Gratzer's suggestion that U.S. adoption of price controls on pharmaceuticals would put a halt to research and development funding (Our prescription drug supply in danger? Take a pill -- Jan. 17) is purely speculative and unsubstantiated. Industry profits might well feel short-term effects. However, there is absolutely no proof that research spending would suffer and thus lead to a dwindling of new medications. At the other end of the spectrum, Dr. Gratzer raises the option of loosening Canadian price controls, presumably to bring them in line with those in the U.S. Surely this is the tail wagging the dog. Please let's remember that Canada is only 3% of the global market, while the U.S. dominates the market. Our practice of setting prices at the median of seven other industrialized countries is very reasonable. Loosening our price controls would likely have a nominal impact internationally, but would have a huge, adverse impact on the health of Canadians, putting medications further out of their reach.
Louise Binder, Chair, Best Medicines Coalition