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Canada deals blow to cheap US drug imports
FT.com ^ | October 17 2004 | Bernard Simon

Posted on 10/17/2004 10:40:42 PM PDT by jcb8199

More than 30 Canadian internet pharmacies have decided not to accept bulk orders of prescription drugs from US states and municipalities.

The move delivers a potentially serious setback to US politicians most notably Democratic presidential candidate John Kerry campaigning to give Americans easier access to cheap drugs from Canada.

Mr Kerry has argued that opening the US to Canadian imports could help lower the costs of prescription drugs for elderly Americans. Such reimportation has become one of the points of difference between him and President George W. Bush during the election campaign.

But growing concern in Canada that growing exports to the US could lead to rising prices and shortages north of the border has prompted the Canadian International Pharmacy Association (Cipa), whose members include several of the biggest internet and mail-order drugstores, to act. “We don't want to give Americans the impression that we have unlimited supply for them to tap into on a commercial basis,” said David Mackay, the association's executive director. Americans, he added, “can't get everything from Canada. We can't be your complete drugstore”.

Prescription drug prices are significantly lower in Canada than the US, because of price controls and bulk buying by the 10 provinces.

Cipa members make up about a quarter of the roughly 150 internet pharmacies operating in Canada, raising the question whether others will follow its lead. Mr Mackay said discussion had been heated at an all-day meeting of Cipa last month at which the new policy was approved. With pharmaceutical manufacturers seeking to restrict supplies and the US Congressional Budget Office recently saying that reimportation from Canada would have a “negligible” impact on US drugs spending, the internet pharmacies have already had difficulty meeting demand from south of the border.

(Excerpt) Read more at news.ft.com ...


TOPICS: Foreign Affairs; Front Page News; Government; News/Current Events; Politics/Elections
KEYWORDS: healthcare; prescriptiondrugs
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1 posted on 10/17/2004 10:40:42 PM PDT by jcb8199
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To: jcb8199
Canada deals blow

Awkward headline bump.

2 posted on 10/17/2004 10:42:24 PM PDT by Troublemaker
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To: jcb8199

looks like the game is up.
The drug companies aren't going to ship Canada enough volume to supply the United States.


3 posted on 10/17/2004 10:43:33 PM PDT by Mount Athos
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To: Troublemaker

Well, we may be able to get our non-prescription crack from Canada. Maybe the candidate for the Libertarian Party can build this into his platform....


4 posted on 10/17/2004 10:45:48 PM PDT by freebilly (Freebilly O'Reilly-- No Spin But Good Vibrations....)
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To: jcb8199

Some day these companies will stop taking bulk orders from Canada's government. Then what?


5 posted on 10/17/2004 10:48:46 PM PDT by GeronL (John Kerry believes in a right to privacy and in gay rights............ ask "fair game" Mary Cheney)
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To: Mount Athos

The drug companies have set themselves up for this by complying with Canadian price controls, allowing U.S. consumers to subsidize Canadian drugs. It was a short-sighted decision that is having major repercussions. And the "safety" issue simply won't hold water.


6 posted on 10/17/2004 10:49:15 PM PDT by rebel_yell2
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To: jcb8199
We need to make our own. IMO , if no fraud committed and the FDA approves a drug then the drug manufactures should be protected from the trial lawyers. If injury occurs, reasonable compensation could come from the FDAs budget, (kind of like we do for immunizations).
7 posted on 10/17/2004 10:49:32 PM PDT by CindyDawg
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To: jcb8199

Of course it's only because Bush is President that Canada doesn't want to supply the US with prescription drugs. When Kerry's elected he'll ensure that the Canadian pharmaceutical companies are able to increase output to meet our needs here in the US....


8 posted on 10/17/2004 10:53:38 PM PDT by freebilly (Freebilly O'Reilly-- No Spin But Good Vibrations....)
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To: rebel_yell2

At the patent laws meeting, the NGOs want the member nations of the WTO to commit to applying - with "full flexibility" - the measures that the TRIPS accord already recognizes for developing countries. The agreement recognizes that developing countries engage in so-called "parallel imports", a mechanism that allows them to purchase medications sold by other countries at a lower price. Another alternative, compulsory licensing, authorizes governments to grant the use of patents, even without the consent of the patent-holder, in cases such as public health emergencies.

http://www.atimes.com/global-econ/CF20Dj01.html
***

In other words, in order for the WTO to approve "free trade" agreements, drugs must be sold to "developing countries" at lower prices than the cost to produce them. So the American consumer, because we are all "wealthy" pay the highest price for drugs so the same drugs can be sold in other countries at a lower price.

The US should abolish the WTO, and go back to a free market system.


9 posted on 10/17/2004 10:55:04 PM PDT by hedgetrimmer
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To: jcb8199
Prescription drug prices are significantly lower in Canada than the US, because of price controls and bulk buying by the 10 provinces.

The real reason prices are lower in Canada is because the pharmacies are making their major profits in the USA and can therefore afford to give poorer countries a price break. Some of this medicine is overstocked inventory or overrun production. Canada's wholesale prices are going up, their supplies are going down, the pharmas are going broke, or R and D is going to be cut back.
10 posted on 10/17/2004 10:59:57 PM PDT by oldbrowser
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To: GeronL

Then the Canadian government will revoke thier patent protection and allow generic manufacturers to make no-name versions that are many times cheaper than the originals that the US companies failed to supply.

Drugs, once created aren't generally dificult to manufacture. The pharm. companies rely on state protected monopolies (patents) to shield them from competition while they recoup research costs. These companies can't afford to alienate governments.

Canadian drug patent periods signficantly increased during the CUSTA negotiations and under NAFTA. Many Canadians saw this policy as an expensive gift to US drug companies. Proponents argued that the extended patents would lead to increased R&D in Canada but this didn't really happen.

I doubt there would be many Canadians arguing to maintain the extended patent protections if US companies started playing games with supplies.


11 posted on 10/17/2004 11:06:59 PM PDT by Huntingtonian
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To: hedgetrimmer
Thanks for the international economic vocab phrase of the day! Never heard the term "parallel imports" and a search made me almost lose my dinner. Funny that PC speech has changed price controls to "parallel imports". If America knew what was going on they'd have none of it...or they'd just change the channel.
12 posted on 10/17/2004 11:12:51 PM PDT by endthematrix (Bad news is good news for the Kerry campaign!)
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To: Huntingtonian; GeronL
How would that work in the international arena. Patents and intellectual property are protected within the WTO framework. The US would challenge Canada in court. Then again, who cares? If Canada can build the pills and refrain from buying from the US that's good for them. So be it. I'm not gonna cry if US pharma corps aren't willing to compete.
13 posted on 10/17/2004 11:17:00 PM PDT by endthematrix (Bad news is good news for the Kerry campaign!)
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To: oldbrowser
We live 10 miles from the canadian border. Most people in my community, (not on some form of govt health care) travel to canada for dental work; probably 50% cheaper and a very good dentist. Only problem is 2 month wait for appointment and your own health plan reimburses you for expenses. The same canadian community doesn't have a hospital, so most stay home for medical care.

I've often wondered the reason of higher american cost. What are the canadians doing better?

14 posted on 10/17/2004 11:28:14 PM PDT by Eska
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To: Eska
What are the canadians doing better?

Their government subsidizes it.

15 posted on 10/17/2004 11:34:40 PM PDT by GeronL (John Kerry believes in a right to privacy and in gay rights............ ask "fair game" Mary Cheney)
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To: Eska

re:
" The same canadian community doesn't have a hospital, so most stay home for medical care. "

" I've often wondered the reason of higher american cost. "

Both the question and the answer
deep inside you
Ye shall find...

- traditional ballad -


16 posted on 10/18/2004 12:25:58 AM PDT by maikeru
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To: jcb8199

The pharmaceutical industry has made it clear if Canada allows the re-importation of drugs into the U.S, it will cut back supplies for Canadian pharmacies or raise prices which means Canadians will have to pay more for drugs. The net benefit to American consumers would be negible. So does anyone still think such a quick fix would permanently lower prescription drug prices in this country? They've got to go back to the drawing boards.


17 posted on 10/18/2004 12:31:39 AM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives On In My Heart Forever)
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To: freebilly
I think this has anything to do with Canadian drug companies. The imports from Canada are primarily U.S.-made pharmaceutical products that are sold in Canada at discounted prices under Canada's price controls.

Basically, the U.S. manufacturers are willing to sell those drugs at discounted prices because they can make up their revenue with sales in the U.S. at higher prices. If too many people start buying these drugs from Canada, then the U.S. manufacturers will simply limit their availability.

The Canadian government knows this -- and they know damn well that their little price-control game will come to a crashing halt when non-Canadians start benefitting from it in large numbers.

18 posted on 10/18/2004 4:05:37 AM PDT by Alberta's Child (I made enough money to buy Miami -- but I pissed it away on the Alternative Minimum Tax.)
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To: Alberta's Child
Basically, the U.S. manufacturers are willing to sell those drugs at discounted prices because they can make up their revenue with sales in the U.S. at higher prices. If too many people start buying these drugs from Canada, then the U.S. manufacturers will simply limit their availability.

The Canadian government knows this -- and they know damn well that their little price-control game will come to a crashing halt when non-Canadians start benefitting from it in large numbers.

Heck, I think we should pass legislation to make it legal to get prescription drugs from Canada, then. It would be so much fun to rap Canada across the knuckles....

19 posted on 10/18/2004 7:22:31 AM PDT by freebilly (Freebilly O'Reilly-- No Spin But Good Vibrations....)
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To: endthematrix

Patents are not protected by the WTO framework when the WTO wants to use a patent as a "wealth giveaway" to a "developing country". The WTO can effectively void any drug patent they want if they think there is a medical crisis in any "developing country".

Its in the DOHA round. Read it if you don't believe me.


20 posted on 10/18/2004 7:59:27 AM PDT by hedgetrimmer
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