Vital Submission to PMPRB’s New Draft Guidelines

Published at Ottawa on March 19, 2025

Vital continues to stress that while distributors are not directly targeted by the guidelines, they are nonetheless directly affected by them. Simply put, drug pricing does not exist in a vacuum, and the guardrails that the PMPRB imposes on the pharmaceutical industry have compelling economic implications downstream for drug access and supply that are overlooked. Since the distribution of medications is largely driven by listed drug prices, which are derived from the federally approved maximum price, the equation is simple: reduced distribution funding leads to lower inventory levels, which in turn reduces regional service capacity (particularly for remote communities), ultimately increasing the frequency and duration of drug shortages.