As originally published by Bettina Hamelin on LinkedIn on 24 March 2026
By Bettina Hamelin
Recent global drug policy changes force a choice, but they don’t limit our ambition. We need a new solution for pharmaceutical innovation—one that’s made by Canadians for Canadians.
The global rules governing how innovative medicines are valued and priced are being rewritten—and Canada is not ready.
The new most-favoured nation (MFN) drug pricing policy in the U.S., which calls for lower American prices, has triggered a global chain reaction that threatens to disrupt access to existing medicines, delay or altogether halt the launch of new medicines, and undermine confidence in Canada’s pharmaceutical market.
For Canadians waiting for a new cancer therapy, a rare disease treatment, or first-in-class medicine, these aren’t abstract policy debates. The changes could have serious consequences for them and their families.
Canada’s innovation gap
This moment has exposed a critical vulnerability: Canada has long undervalued and underinvested in pharmaceutical innovation.
The question now is: How will we respond? Will we wait and see and hope for the best, leaving us susceptible to global shifts? Or will we seize the opportunity to build a more resilient, competitive, and secure health system?
Canadians agree: we must be in charge of our destiny. Research conducted by Hill & Knowlton in January 2026 shows:
- 86 per cent believe the federal government should prioritize access to medicines
- 84 per cent agree that a resilient health system, with reliable access to medicines, is crucial to Canada’s strength and security
- 71 per cent believe Canada should contribute proportionately to global pharmaceutical innovation
What’s at stake for Canadians
Canadians already wait longer than patients in other G7 countries to access innovative medicines. Only 18 per cent of new medicines launched globally are available through Canada’s public drug plans, compared to the OECD average of 28 per cent. Once available, Canadians wait an average of two years to access new medicines through public drug plans, following Health Canada approval, with wide inequities across provinces and territories. The recent global drug policy changes could widen that gap even further.
Inaction paints a stark picture, with far-reaching consequences. Canada becomes a less attractive market and access to new treatments is further delayed. People’s health suffers and they’re sick longer, affecting their ability to work. Overstretched primary care physicians and hospitals face even greater strain. Health system costs and insurance payouts both skyrocket. Canada’s health security—and, by extension, our economic security—is fundamentally weakened.
This scenario is neither acceptable nor inevitable. Canadians expect and deserve leadership—and access to the medicines they need, when they need them. A 2025 study by Dr. Frank Lichtenberg at Columbia University shows that sustained investments in innovative medicines reduced hospital days in Canada by 55 per cent in 2022, saving close to $80 billion in hospital costs. That far exceeds total public spending on innovative medicines.
What’s at stake for the industry
On the frontlines of these global changes is Canada’s innovative pharmaceutical industry—an economic engine that supports more than 110,000 jobs and generates $18.4 billion annually.
This economic footprint is underpinned by world-class researchers and academic institutions, a diverse population ideal for clinical trials, and close proximity to the U.S. market. Yet our slow, restrictive regulatory environment—overly focused on price reduction—discourages investment. The recent global drug policy changes make these regulatory issues an even greater deterrent.
Decisions about pharmaceutical investment, and the timing and location of new medicine launches, are global and highly strategic. Companies look for markets that are predictable, fair, timely, and attractive for innovation. Without a clear Canadian strategy, our innovation pipeline and global competitiveness will be at stake at a time when peer countries are actively strengthening their life sciences ecosystems and investment appeal.
The solution: Urgent, collective action
Today, it’s global drug policy changes. Tomorrow, it will be a different economic shock or reordering of investment priorities. The reality is until Canada strengthens its foundations—until our drug prices, access timelines, and investment environment are globally competitive—we will remain exposed to forces beyond our control.
This moment demands collective action. IMC calls for:
- A unified, pan-Canadian response that brings together industry and governments to co-create solutions that address immediate and long-term risks
- Market access reforms, like addressing Patented Medicine Prices Review Board (PMPRB) limitations, removing price reduction recommendations, and encouraging accelerated access pathways across all provinces
- Sustained increases in federal investment to provinces for innovative medicines
Together, these actions will ensure Canada’s market conditions support the launch of new medicines and encourage continued pharmaceutical investment.
Other countries are moving decisively. The U.K. has already reached a bilateral agreement with the U.S. Now is the time for Canada to move with clarity and sense of purpose to find a new Canadian solution—one that protects patients, safeguards innovation, and positions us as a trusted partner in global health.
