Drugmakers file second court challenge to Canada's new drug price rules - (Financial Post via NewsPoints Desk)

  • Innovative Medicines Canada, together with 16 member companies, has filed a second lawsuit challenging new regulations aiming to lower drug prices in the country, as reported Financial Post Friday.

  • Canada's government estimated that the new measures will reduce healthcare spending by $10 billion over a decade.

  • The news follows a prior lawsuit by Innovative Medicines Canada alleging that the government cannot use regulations to "fundamentally alter" the role of its federal drug price regulator.

  • "We would not enter into this lightly," commented Innovative Medicines Canada President Pamela Fralick, adding "the industry lives and breathes saving lives, but it does require a viable business model to do so. Canada is not creating a sustainable environment for innovative medicines."

  • Under the proposed changes, which are scheduled to go into effect in July 1, 2020, US and Switzerland will be removed from the list of countries used by Canada's Patented Medicine Prices Review Board to set prices, while the regulator will be permitted to consider cost-effectiveness for the first time.

  • The drugmakers challenging the proposal include AbbVie, Astellas, AstraZeneca, Bristol-Myers Squibb, Eli Lilly, Novartis and Pfizer.

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