[seacapn]

Canada won't face a shortage, since it can always just prematurely expire the patents on any given drug and allow its domestic manufacture. That would really change the pharma game.

[doc30]

You hit the nail on the head. The reason drug manufacturers put up with price controls in Canada is the patenet law there. If the pharmaceutical companies want to sell, they agree to the price caps. If they do not, then Canada basically uses eminent domain to claim the patent on the drug in question and allows generics to come on the market at extremely reduced prices.

A lot of people on FR think the U.S. consumer is subsidizing the lower price of drugs in Canada by paying higher prices here. Actually, the prices set in Canada still provide a profit for the drugs sold. The pharmaceutical companies are not at a loss because of proice controls. They are not forced to sell below or at cost.