Canada warned of drug shortages

The Globe and Mail ^ | 5/10/05 | Canadian Press

[doc30]

Ottawa — A coalition of pharmacists, doctors and patients is warning that Canada could face a disastrous shortage of drugs if the United States allows unlimited imports of drugs from Canada.

The coalition says legislation to be introduced in the U.S. Congress next month would overwhelm Canada's prescription-drug supply and price-control system.

Medicines are cheaper in Canada because prices are regulated by the Patent Medicines Prices Review Board.

This has led to a thriving cross-border trade mainly conducted on the Internet.

The coalition says a survey it commissioned found that 55 per cent of Canadians are concerned about U.S. plans to legalize the mass purchase of Canadian drugs.

Defenders of the Internet pharmacy say there are no drug shortages in Canada and deny that they are likely to occur.

[doc30]

Canada has a limited supply of drugs from the pharmaceutical companies. If reimportation becomes legal, in order to save a few $$ in the U.S., Canada will not have a supply larege enough for the U.S. market. It will run out and there won't be anything left for Canadians and there still will not be enough for U.S. demand at lower prices. Canada may restrict exports in response.

[smag999]

This is simply amazing. The nitwits in our Congress and the nitwits in Canada think the pharmaceutical companies are going to compete with THEMSELVES in Canada? Of course Pfizer and every other drug manufacturer is going to cut supplies to Canada and/or raise prices and if Canada won't let them raise prices; they won't get the drugs. I know firsthand American drug manufacturers are sick & tired of dealing with Canada.

[FormerACLUmember]

There already IS a shortage of select major pharmaceuticals in Canada. The basic laws of free trade and economics never cease to amaze the socialists.

Internet sales will be banned shortly in Canada.

[msf92497]

Contrary to the popular MSM socialist spew, there is no free lunch. Someone has to pay. Duh.

[LauraJean]

The problem with price control is that the more popular drugs help cover the costs of drugs being developed or with not a wide target market.
this costs are higher in non price controlled markets and research and development is curtailed especially in the case of drugs that may be useful but not especially profitable.
We are paying the price for drug cost control in Canada and other countries.

[Wiseghy]

Knowledgeable health insurance experts know that the lowest prescription prices in the WORLD can be found right here in the USA at Costco, or Drugstore.com. Their prices for generics are usually 1/3 of those at major retail chains. This means that you can usually get a 90 day supply for about the cost of your usual $10 copay for a 30 day supply. Canada is only lower on A FEW big brand name only drugs, where their government has forced down prices.

By the way, you DO NOT HAVE TO BE A MEMBER to get prescriptions filled at Costco. Just waive your Rx slip at the door and tell them you want to use the Pharmacy.

[newcthem]

Can anyone (with the exception of our dim bulb politicans) say that they didn't see this one coming? Did anyone really believe that the drug companies were simple going to roll over for our political wizards and drop their profits by allowing unlimited sales thru Canada....

[seacapn]

Canada won't face a shortage, since it can always just prematurely expire the patents on any given drug and allow its domestic manufacture. That would really change the pharma game.

[doc30]

You hit the nail on the head. The reason drug manufacturers put up with price controls in Canada is the patenet law there. If the pharmaceutical companies want to sell, they agree to the price caps. If they do not, then Canada basically uses eminent domain to claim the patent on the drug in question and allows generics to come on the market at extremely reduced prices.

A lot of people on FR think the U.S. consumer is subsidizing the lower price of drugs in Canada by paying higher prices here. Actually, the prices set in Canada still provide a profit for the drugs sold. The pharmaceutical companies are not at a loss because of proice controls. They are not forced to sell below or at cost.

[doc30]

Well, you can't recover your development costs is everyone is getting the reduced price drugs, so the drug makers will either have to stop selling to Canada or raise the prices to Canada.

If the pharmaceutical companies don't agree to reduced prices in Canada, the Canadian government takes over the patent and has generic versions made at substantially reduced prices. If the pharmaceutical companies want in the game, they play by Canada's rules. Otherwise, they are completely out and someone else get's to make money on their drug.

[The Old Hoosier]

This is why we must legalize re-importation. This makes the socialists pay for their socialism. Then let them spend time and money enforcing the ban, not our government, or else loosen their price-controls.

[dhs12345]

Just curious, where do Canada get their drugs?

From U.S. manufacturers?

If this is true, aren't we Americans subsidizing the Canadian health care system?

And the whole idea of cheaper drugs via Canada would disappear if Americans demanded cheaper drugs.

[Extremely Extreme Extremist]

Post #4 LOL - Well said!