Canadian Pharmacies Pressured to Halt Shipments to U.S. Seniors

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Canadian Pharmacies Pressured to Halt Shipments to U.S. Seniors

Canadian Internet pharmacies are booming as cash-crunched U.S. seniors hunt for cheaper prescription drugs. In January, however, prescription drug maker GlaxoSmithKline announced it would cut off supplies of its drugs to Canadian pharmacies that sell prescriptions to bargain hunting U.S. seniors.

“In the interest of patient safety and the maintenance of an adequate product supply in (Canada),” Glaxo is “strongly against the Internet sale and export of its Canadian medications,” the company stated.

Representative Bernie Sanders (I-VT) called Glaxo’s letters “a direct attack” on American’s health and vowed to reintroduce legislation to ease importation of Canadian products. “Glaxo is trying to slam the door on a safe and affordable source of medicine for an increasing number of Americans,” said Congressman Sanders.

In the United States only drug manufacturers and their affiliates are allowed to import drugs. Individuals are allowed to travel to Canada and bring back small amounts for personal use, but in recent months, mail order imports have been rapidly rising. According to The Wall Street Journal, U.S. residents save as much as 70% by purchasing prescriptions from Canadian pharmacies and having them shipped—due to Canadian price controls on drugs, and favorable exchange rates on the Canadian dollar.

The debate over purchasing prescription medications online from Canada has been growing. In 2000, Congress passed a law easing the importation of Canadian drugs, but that law has never been implemented. Both the Clinton and Bush Administration have said the safety of the drugs could not be assured.

In response to Glaxo’s announcement, Canadian pharmacies are threatening lawsuits alleging unfair practices and trade violations. Canadian pharmacists argue that about 1 million U.S. residents, mostly senior citizens get drugs they otherwise could not afford through Canadian online mail-order pharmacies. Canadian companies generally have Canadian licensed doctors who review and rewrite the U.S. prescriptions in order to satisfy Canadian regulations.

Sources: “Glaxo Presses Canadian Firms Not to Resell Its Drugs to U.S.,” Joel Baglole, “The Wall Street Journal,” January 22, 2003. “Glaxo Says It Will Retaliate Against Cross-Border Sales,” Sarah Lueck and Joel Baglole, “The Wall Street Journal,” January 13, 2003. “Move to Import Medicines: Boon or Boondoggle?” Sarah Lueck and Laurie McGinley, “The Wall Street Journal,” October 12, 2000.

To read more about Representative Bernie Sanders see “Winner of TSCL’s MVP Award” at http://www.tscl.org/NewContent/101502.asp.

April 2003