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FDA Unveils Historic Drug Import Plan from Canada to Combat High US Prices

  • The Trump administration has proposed a groundbreaking plan allowing states, wholesalers, and pharmacies to import certain prescription drugs from Canada to reduce US drug prices.

  • The FDA's new draft guidance enables drug manufacturers to import FDA-approved medications manufactured abroad, though biologics, controlled substances, and certain injectable drugs are excluded.

  • Implementation faces significant challenges, including Canada's concerns about potential domestic shortages and former FBI director Louis Freeh's warnings about enforcement capabilities.

The Trump administration has unveiled a landmark proposal to allow prescription drug imports from Canada, marking a significant shift in US drug pricing policy. The Food and Drug Administration (FDA) characterized the move as a "historic step" toward addressing the pressing issue of high pharmaceutical costs in the United States.

Key Elements of the Import Plan

The proposal outlines two primary pathways for drug importation. The first would permit states, wholesalers, and pharmacies to import certain prescription medications from Canada. However, the plan excludes several categories of drugs, including controlled substances, intravenous medications, drugs injected into the spine or eye, and biologics.
The second pathway focuses on pharmaceutical manufacturers, creating a mechanism for them to import FDA-approved drugs manufactured abroad that are already authorized for sale in foreign countries.

Implementation Requirements and Safety Measures

Potential importers must submit detailed applications to the FDA, including projected cost savings. The proposal places significant responsibility on importers, who must:
  • Conduct testing for drug authenticity and quality
  • Handle relabeling for the US market
  • Ensure compliance with safety standards
  • Document expected cost reductions
Health and Human Services (HHS) Secretary Alex Azar emphasized the unprecedented nature of the initiative, stating, "For the first time in history, HHS and FDA are open to importation as a means to lower drug prices."

Challenges and Concerns

Several significant obstacles could impact the plan's implementation:
The Canadian government has expressed reservations about the proposal's feasibility, noting that as a major pharmaceutical importer itself, meeting US demand could lead to domestic shortages.
Security concerns have emerged from prominent figures in law enforcement. Former FBI director Louis Freeh has cautioned that current law enforcement and FDA resources may be insufficient to ensure the safety of imported medications.

State-Level Progress

Several states, including Florida, have already passed legislation allowing drug imports. However, these state initiatives require federal approval before implementation, and experts suggest that establishing a functional import system could take years.

Political Context

The timing of this proposal coincides with broader political movements around drug pricing reform. The Democratic Party has advanced its own legislation focusing on federal price negotiations and international price indexing, highlighting the bipartisan nature of concerns over pharmaceutical costs.
The administration's previous attempts to control drug prices have faced setbacks, including unsuccessful efforts to reform the drug rebate system and require television advertisements to disclose list prices.
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Reference News

[1]
Trump proposes drug import plan to cut prices, ahead of impeachment
pharmaphorum.com · Dec 18, 2019

The Trump administration proposed allowing medicine imports from Canada to reduce US drug prices, excluding certain drug...

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