The global rules governing how innovative medicines are valued and priced are being rewritten— and Canada must be ready.
By Dr. Bettina Hamelin
Article originally published on Insights Magazine (Page 36-37), June 9th, 2026.
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.
This moment has exposed a critical vulnerability for Canada. By prioritizing the lowest drug prices possible, we have long undervalued and underinvested in pharmaceutical innovation. As a result, Canada currently ranks last in the G7 for timely public access to innovative medicines—the patented, breakthrough therapies that treat cancer, autoimmune disorders, and rare and infectious diseases.
The question now is: will we wait and hope for the best, or seize this moment to build a more resilient, competitive, and secure healthcare system—one where access to innovative medicines is part of the foundation?
Research by Hill & Knowlton in January 2026 shows Canadians are clear-eyed about where they stand:
- 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
Inaction on recent global drug policy shifts paints a stark picture, with far-reaching consequences. Canada becomes a less attractive market. Access to new treatments is even further delayed. People’s health suffers and they’re sick longer, affecting their ability to work. Overstretched primary care physicians and hospitals face greater strain. Canada’s health security—and, by extension, our economic and national security—is fundamentally weakened.
This scenario is neither acceptable nor inevitable. 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.
WHAT’S AT STAKE FOR THE INDUSTRY
On the frontlines of these global changes is Canada’s innovative pharmaceutical industry, generating $18.4 billion annually to the economy and supporting more than 110,000 high-value jobs. This footprint is underpinned by world-class researchers and academic institutions, a highly-educated workforce, and a diverse population ideal for clinical trials.
Yet our slow, restrictive reimbursement environment that’s overly focused on price reduction discourages investment. The recent global drug policy changes make these issues an even greater deterrent.
THE SOLUTION: URGENT, COLLECTIVE ACTION
Innovative Medicines Canada (IMC), an association that represents 43 innovative pharmaceutical companies, see this as a moment for collective action.
First, a unified, pan-Canadian response is more important than ever. By bringing together industry and governments, we can co-create solutions that address immediate and long-term risks.
We already know this model works. Ontario’s FAST program—Funding Accelerated for Specific Treatments—is a compelling proof of concept. Since its announcement in fall 2025, eight new life-extending cancer treatments have been fast-tracked to patients. IMC believes this kind of collaborative, results-driven approach can be replicated at the national level.
The federal government’s creation of the Pharmaceutical and Life Sciences Sector Task Force on March 18 is an important and long-awaited step in that direction. IMC and its members are committed to collaborating with the government to make tangible recommendations to Prime Minister Carney by the end of June.
Second, market access reforms are essential. Health Canada’s ongoing red tape reduction consultations and the reliance order are steps in the right direction, but more ambition is needed.
Modernizing how we evaluate and price drugs would create a more attractive environment for new medicine launches and investment in research and development. That means adapting the pan-Canadian Pharmaceutical Alliance’s pricing processes to global standards, addressing the limitations of the Patented Medicine Prices Review Board to reflect global market realities, and reviewing Canada’s Drug Agency’s health technology assessments, which often come with punishing price reduction recommendations.
Expanding accelerated access pathways for innovative medicines across all provinces, modelled after Ontario’s FAST program, is another concrete step that would make a real difference for Canadians. The upcoming review of the Canada-U.S.-Mexico Agreement also presents an opportunity to discuss aligning Canada’s intellectual property protections with those of our U.S. and European trading partners.
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.
