Last week, Maine became the first state to enact price controls on prescription drugs.
Drugs often sell for significantly less in nearby Canada, due to drug price controls.
In this case, the cost is drug research and development, most of which takes place in the United States. Almost none is done in Canada because drug companies cannot make a profit there due to price controls. Anyone who can avoid development and testing expenses will be able to sell drugs at a lower price. Generic drugs, which account for almost half of all prescriptions in the U.S., actually cost less here. Also, many of the newest drugs are simply unavailable in Canada because the government restricts their use in order to keep costs down.