What does “Most Favoured Nation” have to do with me?
In 2025, the USA announced that it would “end global freeloading” of drug prices, reporting that despite having less than 5% of the world’s population, US citizens pay so much more for their drugs that they make up about ¾ of worldwide pharmaceutical profits. Canadians, along with people from other countries, have paid less—sometimes much less—for our drugs because pharmaceutical companies could get a good return on their research investments from the USA. The “Most Favoured Nation” (MFN) policy ends this, insisting that companies selling pharmaceuticals in the USA match the lowest international price for a drug.
This, of course, means that prices outside the USA must rise to balance pharmaceutical profits more evenly. As well, there are effects on clinical trial availability and even the willingness of companies to launch new drugs in Canada.
The Gastrointestinal Society has produced an excellent short video explaining what this means for Canadians:
You can also read their extensive information page for more information and for the references for facts mentioned in the video.
PHA Canada is working with our coalition partners to track this issue and engage with governments on solutions that can protect and enhance patient care in Canada. We’ll keep you informed!
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