Innovative Medicines Canada—which represents 41 companies including the Canadian operations of giants like Pfizer, GSK and Merck—has asked a federal court to conduct a judicial review of the measures. The government has ordered the Patented Medicine Prices Review Board (PMPRB) to stop comparing Canadian drug prices to the U.S. and Switzerland and start comparing them to Japan and four European countries when setting maximum prices. Ottawa’s changes will cost the industry significantly—the government estimates it will reduce drug expenses by $8.8 billion over 10 years. (Globe and Mail)

Talking point: The legal case is the second filed by drug companies since the plan was announced in early August; six firms have also challenged it in Quebec’s court system. The companies argue that the government doesn’t have the authority to make the changes to the PMPRB, and that they will limit patients’ access to breakthrough treatments. However, fewer drug launches have not led to worse health outcomes in other countries. New Zealand has some of the lowest drug prices in the world, and was ranked last among 20 OECD countries in access to new medicines by an industry-funded study; the country has among the highest life-expectancy rates for cancer patients of any developed country.