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Canada voices concern over drug sales to U.S.

By Randall Palmer, Reuters Health
October 29, 2003

The Canadian government voiced concern on Wednesday that sales of low-cost prescription drugs to the United States might cause shortages in Canada .

Health Minister Anne McLellan urged professional associations on Wednesday to condemn the practice of Internet sales to the United States .

"There are associations, be they pharmacists in particular or doctors, who have not passed resolutions condemning the practice," McLellan told reporters.

"There are some associations that have taken a strong line in relation to Internet pharmacy practices. I would suggest that other associations should do the same."

McLellan said she had no evidence of any shortages, and her department called for information on the impact of the cross-border sales.

Drug prices are regulated by the Canadian government, and the lure of cheaper medicine has captured the imagination of cities and states south of the border as they try to cut health spending in a market that does not control drug costs.

U.S. seniors, often not covered by corporate health plans, have also discovered cheaper Canadian drugs.

But several big drugmakers have said they would limit the sale of drugs to Canadian wholesalers to prevent the later export of the same products to the United States .

And the concern is that this might end up cutting into what is available for Canadians.

"Cross-border sales of prescription drugs via the growing practice of Internet pharmacy... raise the potential for drug shortages domestically," Diane Gorman, assistant deputy minister of health, said in a letter to medical and pharmaceutical groups and regulators.

At first blush, the idea of finding another niche to sell into the United States appeared to many to be just good business.

But the idea has snowballed, with increasing media coverage on both sides of the border and mayors, governors and members of Congress wanting to tap into a cheaper supply.

The Canadian International Pharmacy Association, a new group of pharmacists that do a mail-order business, said there was no evidence that the sales to the United States were causing any shortfalls.

"It is fear-mongering," the group's vice-president, pharmacist Andy Troszok, told Reuters, adding that the association was launching legal challenges to drug companies' attempts to limit supply.

But the larger Canadian Pharmacists Association opposes the practice on the grounds that it jeopardizes Canadians' health and stretches pharmacists too thin.

"We keep hearing from pharmacists across the country that there are more shortages than there ever have been and they last longer than they ever have," pharmacist Barry Power said for the association.

But it was not clear what the federal government could do to put a halt to the practice. McLellan said provinces were responsible for regulating pharmacies.

If there is evidence that the sales are causing shortages, she would have to sit down with provincial health ministers "and talk very seriously about what is happening," she said.


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