Dorgan's new Importation Legislation more costly to Pharma?

If Dorgan's bill, discussed today in the Senate, sees the light of day it might cost Pharma more than earlier versions of drug importation legislation.


Importation of drugs from other countries which have lower pricing than the US is not a new idea.  Legislation has floated around The Hill for a number of years.  In 2004, CBO Estimates
placed the revenue hit to the Pharmaceutical industry of roughly $4 billion per year.  The CBO indicated that estimates would be much higher but the CBO anticipated drug manufactures would take action to limit supply to low priced countries (among other things) and those countries might act to prohibit exports to the US to preserve supply for their own country. 

Interesting, the  Congressional Research Service Summary of Dorgan's S. 1232 amendment includes  language to limit actions Pharma can take to mitigate impact of the legislation on their top line. 

In fact a a press release from Senator Dorgan's office indicates that Senator Dorgan's own estimates place the savings, or cost to the pharma industry, at closer to $10 billion a year.

Pharma lobbying is heating up in response to amendment.