Get the latest market trends in your inbox

Stay on top of the latest market trends and economic insights with the Axios Markets newsletter. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Minneapolis-St. Paul

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa-St. Petersburg news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa-St. Petersburg

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Sarah Grillo/Axios

The Trump administration is moving forward on the traditionally Democratic policy of importing prescription drugs from abroad, but the impact — if the proposals are actually finalized — could be pretty muted.

The big picture: While importation could help some patients afford their drugs, the policy overall is an attempt to take advantage of other countries' lower drug prices while avoiding taking direct action to limit prices in the U.S.

Details: HHS announced 2 pathways for drug importation yesterday. The first — which is a more traditional form of importation — would allow patients to import certain drugs to from Canada.

  • Notable exceptions are biologics — including insulin — controlled substances and intravenously injected drugs.
  • States, wholesalers and pharmacies would submit demonstration proposals to HHS, which would be time-limited and subject to safety and cost conditions.

Between the lines: This will likely take years to implement, although several states have already expressed interest in taking advantage of it.

Yes, but: There's a lot of reasons to be skeptical about its impact — especially because Canada doesn't have large quantities of drugs compared to the U.S. supply and it's not thrilled about the idea of sending them to us.

  • But still, "this rule could have a lot of impact in specific cases, such as with single-source drugs in rare diseases where there is a massive disparity between Canadian and U.S. prices," conservative health wonk Avik Roy tweeted.

The second pathway would allow drugmakers to import versions of FDA-approved drugs that they're selling in other countries, or to sell the same drug at a different price in the U.S. by working around their contracts with supply chain middlemen.

  • It appears to address complaints by drug companies:, according to HHS' outline of its plan. But "it’s not clear to me why manufacturers would want to do that," said Vanderbilt's Stacie Dusetzina.

The other side: "Rather than surrender the safety of Americans by importing failed polices from single-payer countries, we should work on solutions here at home that would lower patient out-of-pocket costs at the pharmacy counter," said Steve Ubl, CEO of the Pharmaceutical Research and Manufacturers of America, in a statement.

The bottom line: "By definition, importing is not going to be a large-scale solution," Dusetzina said.

Go deeper

4 hours ago - World

Maximum pressure campaign escalates with Fakhrizadeh killing

Photo: Fars News Agency via AP

The assassination of Mohsen Fakhrizadeh, the architect of Iran’s military nuclear program, is a new height in the maximum pressure campaign led by the Trump administration and the Netanyahu government against Iran.

Why it matters: It exceeds the capture of the Iranian nuclear archives by the Mossad, and the sabotage in the advanced centrifuge facility in Natanz.

Scoop: Biden weighs retired General Lloyd Austin for Pentagon chief

Lloyd Austin testifying before Congress in 2015. Photo: Chip Somodevilla/Getty Images

Joe Biden is considering retired four-star General Lloyd Austin as his nominee for defense secretary, adding him to a shortlist that includes Jeh Johnson, Tammy Duckworth and Michele Flournoy, two sources with direct knowledge of the decision-making tell Axios.

Why it matters: A nominee for Pentagon chief was noticeably absent when the president-elect rolled out his national security team Tuesday. Flournoy had been widely seen as the likely pick, but Axios is told other factors — race, experience, Biden's comfort level — have come into play.

Updated 6 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Health: WHO: AstraZeneca vaccine must be evaluated on "more than a press release."
  2. Politics: Supreme Court backs religious groups on New York COVID restrictions.
  3. World: Thailand, Philippines sign deal with AstraZeneca for vaccine.
  4. Economy: Safety nets to disappear in December Black Friday shopping across the U.S., in photosAmazon hires 1,400 workers a day throughout pandemic.
  5. Education: National standardized tests delayed until 2022.

Get Axios AM in your inbox

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!