The Canadian government’s drug pricing changes could lead to reduced prices, but they will likely cut access to drugs and discourage investment in the pharmaceutical industry, according to a study done by the Fraser Institute. .“The core issue is that Ottawa’s changes to the Patented Medicines Regulations are intended to reduce prices, but will also likely result in delayed or limited access to new life-saving medicines,” said Fraser Institute senior fellow and study co-author Kristina Acri in a Tuesday press release. .“Affordability is important but so, too, is making sure Canadians have access to the best medicines in the world.” .The Patented Medicine Prices Review Board (PMPRB) announced amendments to the Patented Medicines Regulations. .These amendments change the group of countries used for comparison to determine drug prices in Canada. Switzerland and the United States have been removed in favour of a set of countries with lower prices, but they have access to few new and innovative drugs. .The study said these changes will have major consequences for people because potential lower prices discourage pharmaceutical companies from launching new drugs in Canada. It went on to say Ottawa’s changes intended to reduce drug prices will reduce financial incentives to develop new medicines. .The Fraser Institute noted COVID-19 vaccines were exempted from PMPRB pricing oversight, suggesting the Canadian government is aware about how these restrictions could hurt innovation with drugs. .“Ottawa’s proposed changes to drive down drug prices will have an impact on peoples’ access to new life-saving medicines, and Canadians should be aware of the trade-off the government is making,” said Acri. .Support drops to below half of Canadians for new Canadian government social programs when taxes have to be raised to pay for them, according to a Leger poll commissioned by the Fraser Institute in May. .READ MORE: Less than half of Canadians support new social programs when tax increases included: Poll.“Despite the federal government’s borrow-now, pay-for-it-later approach to public programs, Canadians need to be aware that these new programs have significant costs that will have to be paid for by taxpayers eventually,” said Fraser Institute associate director of fiscal policy research Jake Fuss. .The latest federal budget proposes universal dental care, pharmacare, and a national daycare program. Government estimates show dental care will cost $1.7 billion per year, pharmacare would be $15.3 billion per year, and national daycare is estimated to be $7.9 billion.
