Canada is not necessarily subsidizing the price, they simply tell the drug companies what the price will. They control the price. They limt what the company can charge
Since even at dictated prices the drug companies are making money, they simply sell to canadian distribrution chain at cheaper prices than they sell to US distributers.
Did you read the articles I linked? One study found that Americans are too dammed lazy to shop around for lower priced drugs. The study gave list of drugs which where found cheaper in the United States than Canada.
Price controls always harm a market and the consumer. In other words people will die because of government price controls. Thousands of people have died because governments have held up the approval of life saving drugs. You notice they never report those numbers.
By taking profit out of the drug business you kill any innovation in the future. The United States produces more new drugs per year than any other nation. The biggest problem with the U.S. drug industry is the FDA not the unlimited profit margin. If you think prices of drugs are too high than you should go into the prescription drug business and lead the way. Let me know when you do I’m always looking for a bargain. I bet if you compared the soft drink industry profit margin with the drug industry profit margin you would be surprised.