Drug makers in Canada are denying collaboration with Florida's plan to import cheaper medication, despite the state's government insisting the program is in motion. Since 2019, Florida Governor Ron DeSantis has proposed state drug plans to address high pharmaceutical prices by importing medication from Canada, where costs are significantly lower. Industry data reveals U.S. prices are more than triple those in Canada for the same products. Canadian manufacturers already export approximately $7 billion worth of pharmaceutical products to the U.S. annually, and would be undercutting their U.S. prices if they exported some products at Canadian prices. In 2024, the U.S. Food and Drug Administration approved Florida's plan to import drugs, though only for two years. However, no drugs have been shipped through the program, and the state's warehouse, costing over $80 million, has been repurposed for emergency equipment during hurricane season. This week, Politico reported that the state is still working on the program, with negotiations ongoing between Florida's vendor and Canadian manufacturers and distributors. However, associations representing Canadian drug manufacturers and distributors deny any collaboration with Florida on this program. Innovative Medicines Canada and the Canadian Association for Pharmacy Distribution Management have not spoken to Florida about the program, and are unaware of any distributors in talks with the state. Canadian prices are cheaper due to the public healthcare system and different cost control methods by regulators, meaning changing shipping pathways won't address high U.S. prices. The entire idea is bewildering, according to one industry representative. After the FDA approved Florida's plan in 2024, Health Canada warned drug companies, wholesalers, and distributors not to export pharmaceuticals outside the country if it would cause or worsen domestic shortages. Florida's plan also contradicts other initiatives from the Trump administration to address pharmaceutical pricing and manufacturing, including threatened tariffs on pharmaceuticals and a national-security investigation into the drug supply chain. The Trump administration has since focused on signing 'most-favored nation' agreements with drug makers, where they pledge to lower U.S. prices in exchange for better reimbursement through Medicare insurance plans.
