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The drug companies in Canada are part of the drug pricing process. Their development costs are considered. In exchange, they get additional monopoly priveleges on patented medicine.

Canada doesn’t even have particularly low drug pricing compared to the rest of the world, the opposite in fact. Canada just had low drug prices compared to the most expensive market on the planet.

It’s possible that lower drug prices in one country would disincentivize a global industry that touches almost every human on earth. Or it could not.