Why does Meridia cost comparatively less in Canada?
Prescription drugs like Meridia are generally cheaper in Canada even those manufactured by American companies. Drugs distributed and sold in Canada are generally subjected to price protocols. The Canadian government has authorized a review board that carefully assesses the price protocols followed by European countries as well as the United states, the median prices of the meridia in these six countries decides the retail price of meridia in Canada. More or less the Canadian authorities have piggy banked on the protocols followed by the European countries and have adopted a similar strategy of pricing in their region.
So why haven’t drug manufacturers dropped prices in tandem with the international prices? The primary reason is that most major drug manufacturers are based in the US. They usually undergo a lot of costs in research and development which needs to covered. These costs are passed on to the consumers in the US while the gains from the cheaper meridia sold across the world add as benefits to the bottom-line of the companies.
What are the actual price differences of Meridia in Canada versus the United States?
Meridia is a prescription drug sold in online stores in the United States and Canada. This being a weight loss pill, also with a large number of reported issues pertaining to its abuse, the distribution and sale of Meridia has been banned in the United States. However customers may still be able to buy meridia pills online which may either be branded or generic. The drug manufacturers are engaging in what economists call as ‘price discrimination’ which is basically charging different prices to different customers. This has worked out for so long due to the fact that meridia pills are cheap to manufacture and their margins don’t get affected due to such wide prices ranges.
In the US too, price discrimination exists to a certain extent where health ministry and the large buyers are able to negotiate effectively on the prices while the uninsured continue to pay top dollar.
In Canada customers may be able to buy thirty 15mg Meridia pills costs $87, sixty pills cost $127 and so on, while for the 10mg pills thirty capsules cost $63, sixty cost $119. Now this is significantly cheaper compared to American markets.
How low price of meridia in Canada affects people in the US?
You may have to consider both sides of the coin here. One you may consider the fact that the customers in the US especially those who do not carry any sort of medical insurance may have a lot issues paying the high costs associated with Meridia. On the other hand you have US customers paying extremely large prices for meridia medication that genuinely don’t cost that much to manufacture. They end up paying for the research and development charges incurred by the company. One may also argue that if the prices are more or less evenly spread out across different countries then the customers may be able to bear small differences in prices of meridia which may not cause a major dent in their pockets. In reality though the situation is much harder than you think, this cannot be worked out everywhere as the purchasing power parity fluctuates from one region to another so obviously an individual from India cannot afford to same price as that from the US.