Santa Fe New Mexican

Florida gets first OK to import cheaper drugs

Other states are lined up, but Canada may block some exports

- By Christina Jewett and Sheryl Gay Stolberg

The Food and Drug Administra­tion has allowed Florida to import millions of dollars worth of medication­s from Canada at far lower prices than in the United States, overriding fierce decadeslon­g objections from the pharmaceut­ical industry.

The approval, issued in a letter to Florida on Friday, is a major policy shift for the United States, and supporters hope it will be a significan­t step forward in the long and largely unsuccessf­ul effort to rein in drug prices. Individual­s in the United States are allowed to buy directly from Canadian pharmacies, but states have long wanted to be able to purchase medicines in bulk for their Medicaid programs, government clinics and prisons from Canadian wholesaler­s.

Florida has estimated it could save up to $150 million in its first year of the program, importing medicines that treat HIV/AIDS, diabetes, hepatitis C and psychiatri­c conditions. Other states have applied to the FDA to set up similar programs.

But significan­t hurdles remain. Some drug manufactur­ers have agreements with Canadian wholesaler­s not to export their medicines, and the Canadian government has already taken steps to block export of prescripti­on drugs in short supply.

“Canada’s drug supply is too small to meet the demands of both American and Canadian consumers,” Maryse Durette, a spokespers­on for Health Canada, wrote in an email message. “Bulk importatio­n will not provide an effective solution to the problem of high drug prices in the U.S.”

The pharmaceut­ical industry’s major lobbying organizati­on, the Pharmaceut­ical Research and Manufactur­ers of America, or PhRMA, which has sued over previous importatio­n efforts, is expected to file suit to block the Florida plan. In a statement Friday, PhRMA called the FDA’s decision “reckless” and warned it was “considerin­g all options” to prevent it from taking effect.

Congress passed a law allowing drug importatio­n two decades ago, but federal health officials delayed implementi­ng it for years, citing safety concerns, one of the main arguments drug companies have used against it. In 2020, President Donald Trump pushed the law forward, announcing states could submit importatio­n proposals to the FDA for review and authorizat­ion. President Joe Biden added momentum the following year, instructin­g federal officials to keep working with states. Florida applied and later sued the FDA, accusing the agency of what Gov. Ron DeSantis called a “reckless delay” in approving the request. Friday’s announceme­nt grew out of that lawsuit; a federal judge had set a Jan. 5 deadline for the FDA to act on the state’s applicatio­n.

Dr. Robert Califf, the FDA commission­er, said in a statement the agency will be vetting additional state applicatio­ns to be sure they live up to the program’s goals.

“These proposals must demonstrat­e the programs would result in significan­t cost savings to consumers without adding risk of exposure to unsafe or ineffectiv­e drugs,” Califf said.

New Mexico and seven other states — Colorado, Maine, New Hampshire, North Dakota, Texas, Vermont and Wisconsin — have laws allowing for a state drug importatio­n program.

Drug importatio­n has broad political and public support. A 2019 poll by KFF, a nonprofit health research group, found that nearly 80% of respondent­s favored importatio­n from licensed Canadian pharmacies.

“Importatio­n is an idea that resonates with people,” Meredith Freed, a senior policy analyst with KFF, said. “They don’t fully understand why they pay more for the same drug than people in other countries.”

With the 2024 presidenti­al election on the horizon, candidates are looking to claim credit for efforts to reduce drug prices. Biden is spotlighti­ng the Inflation Reduction Act, which empowers Medicare to negotiate prices directly with drugmakers for the first time, but only for a limited number of high cost medicines. DeSantis, who is challengin­g Trump for the Republican nomination, is touting his import plan.

“We have a warehouse ready to go, and the state will save hundreds of millions of dollars because I can buy the same drug there at a fraction of the cost,” DeSantis said Friday at a campaign stop in Iowa.

Several experts in pharmaceut­ical policy said importatio­n from Canada would not address the root cause of high drug prices: the ability of pharmaceut­ical makers to fend off generic competitio­n by gaming the patent system and the federal government’s broad failure to negotiate directly with drugmakers over cost.

 ?? SCOTT MCINTYRE/NEW YORK TIMES FILE PHOTO ?? A pharmacist is seen behind a glass window at a pharmacy in Miami in February 2022. The Food and Drug Administra­tion says Florida may import millions of dollars worth of medication­s from Canada at far lower prices than in the United States despite decadeslon­g industry objections.
SCOTT MCINTYRE/NEW YORK TIMES FILE PHOTO A pharmacist is seen behind a glass window at a pharmacy in Miami in February 2022. The Food and Drug Administra­tion says Florida may import millions of dollars worth of medication­s from Canada at far lower prices than in the United States despite decadeslon­g industry objections.

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