Canada’s Supreme Court Preserves Drug Price Control Powers

The Supreme Court of Canada has upheld the right of Canada’s Patented Medicine Prices Review Board to fine drugmakers for excessive drug prices and order them to lower their prices.

On June 28, the court dismissed New Haven, Conn.-based Alexion Pharmaceuticals Inc.’s application for leave to appeal the constitutionality of certain pricing provisions in Canada’s Patent Act. The ruling ends a dispute that began in 2015.

The court’s decision, widely expected because of a 2015 Federal Court of Appeal precedent, has reaffirmed the constitutionality of the board’s price review regime and likely discouraged future challenges of its authority.

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