Terence Corcoran: Trade and patent policies cut pharma shipments to U.S.

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeFP CommentTerence Corcoran: Trade and patent policies cut pharma shipments to U.S.Canadian firms to end delivery of cheaper drugs to AmericansLast updated 0 minutes ago Xifaxan is a prescription drug with several benefits, including relief of a gut-to-brain disease known as overt hepatic encephalopathy. Photo by Getty ImagesSo here’s the story from the front page of The Wall Street Journal on Wednesday.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an Account“Diamantina Cavazos, 38-year-old Dallas-based project manager, has used an online Canadian pharmacy for two years to buy a prescription drug for around $10 a week, a fraction of what it costs in the U.S. As of next month, a loophole that allows her to personally import the medication, Xifaxan, for her painful gut condition, is closing. She will have to pay $1,100 a week for her prescription because she couldn’t get it covered by her insurer in the U.S. ‘I am extremely upset,’ she said.”This advertisement has not loaded yet, but your article continues below.Understandable. But is that staggering price comparison accurate? Apparently it is, according to a couple of quick Google searches.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againQuestion: “What is the price of Xifaxan in the United States?”Answer: “Without insurance, the retail price for brand-name Xifaxan 550 mg in the U.S. is roughly $59 to $65 per tablet, averaging about $2,800 to $3,800 for a typical 42-tablet course.”Question: “What is the price of Xifaxan in Canada?”Answer: “Brand-name 550 mg versions in Canada generally cost around $11.30 to $17.50 per pill (e.g., ~$985 for 56 tablets), which is still considerably less than typical U.S. retail cash prices.”Cavazos is one of millions of Americans who use foreign mail-order pharmacies, mostly from Canada, to acquire affordable daily medications. Although the $10-per-week price Cavazos is said to be paying looks understated — maybe $30-per-week depending on the supplier? — it is certain that millions of Americans ”are facing an impending deadline that could abruptly cut off their prescription supply” from Canada, said the Journal’s report.This advertisement has not loaded yet, but your article continues below.That deadline, Oct. 22, is when a U.S. Department of Homeland Security order comes into effect removing a special “de minimis exemption” for mail shipments arriving in the United States with a stated value of $800 or less. Such small-value shipments will no longer be exempt from tariffs or investigation.The Xifaxan case is a story in itself. It’s a prescription drug with several benefits, including relief of a gut-to-brain disease known as overt hepatic encephalopathy. In the United States, the drug remains the patent of a subsidiary of Bausch Health, the Laval, Que.-based international pharmaceutical giant. Xifaxan patents initially expired in 2024, but a court case led to regulatory extensions to 2029 on the grounds that new and different formulations can now be prescribed to treat encephalopathy.There are, in effect, two regulatory issues around the pricing and shipping of Xifaxan to the United States from Canada and elsewhere. The patent issue allows for the control of the price of the drug by joint government and corporate policy. The other is the new Oct. 22 deadline that will prevent Canadian companies from shipping small batches of life-saving drugs to Americans.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.How did that happen? Enter President Donald Trump. Canadians will recall his rants about the flood of illicit drugs such as fentanyl allegedly flooding the U.S. from Canada. Back in February 2025, Trump issued a presidential order to address the flow of illicit drugs “across our Northern Border.” To cut off the flow, Trump said he had declared “a national emergency regarding the unusual and extraordinary threat to the safety and security of Americans, including the public health crisis caused by fentanyl and other illicit drugs and the failure of Canada to do more to arrest, seize, detain, or otherwise intercept drug-trafficking organizations, other drug and human traffickers, criminals at large, and illicit drugs.” To defend America against Canada, Trump said it was “necessary and appropriate to … suspend duty-free de minimis treatment” of low-value packages entering the U.S.Trump’s plan to use the packaging gambit in the name of capturing drug tariffs failed in court. But then the government moved to spread the order to use the latest technology to track and monitor all packages. Under the plan “all international mail packages — including personal importations of prescription medications and low-value e-commerce goods— can no longer bypass formal customs.” In a notice last year, Canada Post warned that “all postal shipments up to US$800 in value to the U.S. now require duties to be assessed and prepaid before your package crosses the border.”This advertisement has not loaded yet, but your article continues below.The end of the minimum package plan officially intended solely to tackle drug imports has evolved into a broader project. The impact on fentanyl will be non-existent. The model now in place reaches all packages. The unplanned impact of the system is that it will deprive millions of U.S. patients of low-cost essential pharmaceuticals.The exact volume or value of small-package pharmaceuticals that were flowing to the U.S. from Canada is unknown. Tim Smith, general manager of the Canadian International Pharmacy Association, said members of his organization have been shipping products to the U.S. for 25 years to individuals in need of low-cost drugs not covered by health-care insurance or plans.Looming in the economic and ideological background is the issue of tariffs and trade wars. Another uncharted economic topic is the existence of patents. In the economic theory world, patent policy cuts two ways. Libertarians such as Milton Friedman supported patents as an essential property right that fosters innovation. Others see patents as a legal structure that fosters and protects corporate monopoly pricing power.But that’s for another day.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.