Drug Price

Distortions: USA and

Canada

Case Study
RATIONALE
OBJECTIVES
Throughout this study, the researchers will be able to:

• Determine the difference of the drug price distortions

between United States and Canada;
• Discuss the drug price distortions between United States
and Canada;
• Know the policy implications relating to drug price
distortions in United States and Canada.
ISSUES AND CONCERNS
Distortions in the drug prices of US and Canada imposed
various concerns and issues affecting both the consumers
and pharmaceutical companies in US.
Canada
• High prices of generic drugs;
• Low competition in the market due to monopoly- style
pricing power
• Government policy implementing price controls on
patented drugs only
United States
• Adaptation of Canadian-style drug policies
• Rising prices of patented drugs
STATEMENT OF THE PROBLEM

This study aims to answer the following questions:

1. Is there a significant difference between the drug prices of
United States and Canada?
2. Is there a significant relationship between the drug price
distortions in Canada and United States?
3. How does drug price controls affect the people and the
society in United States and Canada?
AREAS OF CONSIDERATION
SWOT Analysis
Strengths Weaknesses
 
 
 

Opportunities Threats
   
 Strengths
United States
- Healthy market competition
- Lacks monopsony buying power

Canada
- More public buyers
- Cheaper patented-drug prices
 Weaknesses
United States
- High profits from the increased of patented-drug prices
 
Canada
- Less market participants
 Opportunities
United States
- Lack of published data
 
Canada
- National expenditure exceeds national income resulting
into national debt, loss of savings, etc.
 Threats
United States
- Research and development costs
 
Canada
- Failed government intervention.
POINT OF VIEW
ALTERNATIVE COURSE OF ACTION
RECOMMENDATION
IMPLEMENTATION