In an unusual move, a Canadian government watchdog plans to hold a hearing to review what it calls “excessive” pricing for Soliris, an Alexion Pharmaceuticals' drug used to treat a pair of rare diseases. The decision by the Patented Medicines Review Board comes after the drug maker refused to lower its prices which, depending upon indication, costs either $400,000 or $560,000 per patient.

The dispute is only the latest instance in which a government is pushing back against the cost of prescription medicines, a controversial issue bubbling up in a growing number of countries and setting payers and the pharmaceutical industry on edge. Canada is no exception, although board director Doug Clark says this is the first time in nearly three years the watchdog is pursuing a hearing over pricing.

The spat over Soliris stems from a comparative pricing mechanism used by the board. Canadian rules require that drug prices should not be higher than the median price found in the seven other countries – the U.S., the U.K., Germany, France, Italy, Sweden and Switzerland. The board determined that Alexion set “the highest international price” for Soliris.

In a statement of allegations, the board says the “excessive” pricing occurred from Jan., 1, 2012 through the first half of 2014, and requested that Alexion repay revenue generated by this excess through June 30, 2014. The board also wanted Alexion to lower its pricing. But since the drug maker refused the requests, the board plans to hold a hearing, although a date has not yet been set.

For more detaila, go to: http://blogs.wsj.com/pharmalot/2015/02/06/canada-wants-alexion-to-repay-sales-generated-by-excessive-pricing/