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Pharmaceutical Importations

Recent articles have now indicated that the current Administration will permit the importation of drugs from Canada and possibly other locations. In the analysis in various papers, the issue of assuring that these drugs are compliant with the Federal Drug Administration has been raised.  I refer back to my most recent article (and my prior ones, which are enumerated in that article) on the approach for pricing drugs that would avoid that problem.  Recall that under the “Most-Favored Nation” approach, the United States would mandate by statute that no one could sell a pharmaceutical in the United States for a price higher than the lowest price that it was sold anywhere else in the world.

I recognize that this has the potential of unforeseen consequences, including the possible unforeseen consequence that funding will not be provided through the pricing mechanism for drug companies to engage in high risk research and development. While the drug importation approach would be on a much smaller scale, obviously people buying drugs cheaper in Canada will diminish the demand for the same drug at a much higher price in the United States.  That also will deny resources to the drug companies for research and development.

I believe that, leaving in the hands of the drug companies, the business decisions as to pricing within a restricted environment of “Most Favored Nation” will result in the best approach for the spreading of research and development costs on all users throughout the world and not imposing them solely on the American consumer.

© 2020 Giordano, Halleran & Ciesla, P.C. All Rights Reserved National Law Review, Volume IX, Number 216


About this Author

Frank R. Ciesla, Giordano Law Firm Health Care Litigation Health Care Fraud and Abuse Tax Health & Hospital Law
Of Counsel

Mr. Ciesla is Chair Emeritus of the firm's Health Care Law Practice Area. His practice is primarily devoted to Health Care and Government Contracts Law. He counsels clients on legal developments facing healthcare providers in the modern health care environment. Firm clients include hospitals, nursing homes, physicians and physician groups, individual practice associations, home health agencies, ambulance carriers and industry-wide associations.

Mr. Ciesla advises such clients on business structures, mergers and consolidations, joint ventures, reorganization of health care providers...

Beth Christian, Giordano Law firm, Health Care Attorney,Health Care Fraud and Abuse, Cannabis Law, Non-Profit Law

Ms. Christian's practice is devoted to Health Care Law and legal issues facing Health Care facilities licensed professionals and non-profit organizations. She has over twenty years of experience counseling clients on legal issues facing the modern health care and non-profit communities.

Anjali Baxi, Giordano Halleran Law Firm, Healthcare Attorney, New Jersey health Law,Cannabis Law,Government Affairs,Business Transactions, Health Care Law Regulation, Medicare and NJ Medicaid Enrollment

Anjali has been practicing law for 15 years, mainly focused on health care transactional and regulatory matters. She prepares and reviews LOIs, purchase agreements and other transaction documents for health care providers needed for the business transfer and necessary for the transfer of NJDOH and NJDHS licenses and provider numbers. She also reviews agreements required for the day to day operations of health care facilities.

She has counseled skilled nursing, assisted living, adult medical day care, outpatient facility clients and hospitals regarding NJDOH regulatory requirements,...

Ari G. Burd, Shareholder, Giordano Law Firm, Labor & Employment, Cannabis Law, Health Care

Ari devotes his time to assisting and defending employers with regard to traditional employment issues. He frequently counsels employers for compliance with New Jersey laws and has extensive transactional and litigation experience.

Ari has litigated employment matters throughout the state, having made appearances in almost every Superior Court in New Jersey, as well as before both Federal District Courts in New Jersey and the Federal and State Courts in New York.  These actions have involved a diverse range of claims such as wrongful discharge, discrimination, harassment,...