Poison Pill: Importing Foreign Drug Price Controls

In response to recent regulatory and legislative proposals to benchmark US prescription drug prices to prices found in other countries, we looked at the underlying legal and economic issues.

As the title of this paper, "Poison Pill: Importing Foreign Drug Price Controls," suggests, both the regulatory and legislative proposals to index domestic drug prices to foreign prices run into the same serious economic issues. However one serious flaw trumps all others. The focus of the paper is on the fact that governments cannot effectively set efficient prices.

In addition, we found that the regulatory proposal is likely illegal, as it grossly exceeds the legal authority granted to the administration.

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