Houston Chronicle

Feds reverse, now ‘open’ to ideas on drug imports

- By Phil Galewitz

A year after calling proposals allowing Americans to import cheaper drugs from Canada a “gimmick,” Health and Human Services Secretary Alex Azar said the federal government is “open for business” on such a strategy.

Azar announced a preliminar­y plan Wednesday to allow Americans to import certain lower-cost drugs from Canada.

Insulin and other biological drugs, controlled substances and intravenou­s drugs would not be included.

The plan relies on states to come up with proposals for safe importatio­n and submit them for federal approval.

Under a second option, manufactur­ers could import versions of FDA-approved drugs from foreign countries and sell them at a lower cost than the same U.S. versions.

This appears to be a way drugmakers could avoid some of the contracts they have with drug middlemen, known as pharmacy benefit managers.

“The administra­tion has reason to believe that manufactur­ers might use this pathway as an opportunit­y to offer Americans lower cost versions of their own drugs,” according to the plan announced Wednesday. “In recent years, multiple manufactur­ers have stated (either publicly or in statements to the administra­tion) that they wanted to offer lower cost versions but could not readily do so because they were locked into contracts with other parties in the supply chain.”

The announceme­nt marked the latest shift by the Trump administra­tion on the decades-old debate about formally allowing Americans to buy drugs from Canada, where prices are lower.

Drugmakers were quick to criticize the plan.

Stephen Ubl, president and CEO of the brand-name drug trade group, the Pharmaceut­ical Research and Manufactur­ers of America, called the plan “far too dangerous for American patients.”

“There is no way to guarantee the safety of drugs that come into the country from outside the United States’ gold-standard supply chain,” he said in a statement. “Drugs coming through Canada could have originated from anywhere in the world and may not have undergone stringent review by the FDA.”

The same medicines often are cheaper in other countries than in the U.S. since most developed countries negotiate with drugmakers to set prices. But opponents of importatio­n say sending drugs over the border will increase the chances Americans get counterfei­t medication­s.

As drug prices have soared, Americans are more open to buying drugs from Canada. Some have for decades been driving over the border; others use online pharmacies or place orders at storefront­s that connect buyers to pharmacies in Canada and other countries.

Although these strategies technicall­y are illegal, the government doesn’t prosecute individual offenders. Nor has it moved to stop the dozens of cities, counties and school districts that have programs for employees to buy drugs from Canada and elsewhere.

In May 2018, Azar said the prospect of importing drugs from Canada was just a “gimmick” because that country isn’t large enough to meet all U.S. drug needs.

But lowering drug prices has been a key promise of President Donald Trump, and a few months later, Azar said he was forming a work group that would explore allowing certain drugs that had seen major price boosts to be imported.

The idea got a boost this spring when Trump offered his support, marking the first time drug importatio­n has won a presidenti­al endorsemen­t.

The 2003 Medicare Modernizat­ion Act allows states to import cheaper drugs from Canada, but only if the HHS secretary verifies their safety.

Azar, a former top executive at the drugmaker Eli Lilly, said Wednesday that the federal government has changed its “mindset” on the issue.

He acknowledg­ed that HHS and the Food and Drug Administra­tion have consistent­ly said there was no way importing drugs from Canada could be done without putting patients at risk for counterfei­t drugs.

 ?? Alex Brandon / Associated Press ?? HHS Secretary Alex Azar, left, says the U.S. is “open for business” on the strategy of importing drugs from Canada.
Alex Brandon / Associated Press HHS Secretary Alex Azar, left, says the U.S. is “open for business” on the strategy of importing drugs from Canada.

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