House Speaker Dennis Hastert (R-Ill.) plans to work with the pharmaceutical industry and trade officials to deliver "fairer" drug prices in the U.S.

Hastert met with FDA Commissioner McClellan, U.S. Trade Representative Robert Zoellick and pharmaceutical industry representatives Dec. 11 as "the first step in a process to deliver fairer prices for American consumers."

The meeting is the latest indication that the cross-border pricing debate has not ended with enactment of the Medicare prescription drug legislation. The Medicare bill, signed into law Dec. 8, would allow imports from Canada only if HHS certifies to the safety of the program.

However, Hastert emphasized that he continues to believe that the "economics" of Canadian imports "don't work."

The Speaker is instead picking up on arguments articulated by the drug industry and Commissioner McClellan that the focus of the debate should be on encouraging other nations to pay their share of drug development costs (¹ Also see "Rx Pricing Plan Offered By FDA’s McClellan; Industry Must Meet “Challenge”" - Pink Sheet, 29 September, 2003., p. 3).

"By getting fairer pricing in Canada, American consumers will also get fairer prices for their prescription drugs," Hastert maintained.

The Pharmaceutical Research & Manufacturers of America has been adding to its evidence in support of the argument that parallel trade will not translate into savings to consumers. PhRMA staff were briefed on a study by a London School of Economics researcher Dec. 4 that found parallel trade did not lead to equalization of prices.

The study, funded by a grant from Johnson & Johnson, found parallel trade has led to no price equalization across borders, "modest" savings to health insurers and "zero" benefit to patients. Most drug price differentials are retained by parallel importers as profits, the study says.

In addition, manufacturers "incur a significant loss of business in destination countries from the conduct of parallel trade."

Rx Pricing And Trade Subject Of FDA, Industry Meeting With House Leader

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