Canada to control bulk sales of drugs to U.S.

I'm in two minds about this bulk ban sale of drugs to the U.S.

One the one hand, it's good for business, creating lots of sales. Good for American consumers, too. On the other hand, I'm concerned that pharmaceutical companies are threatening to halt shipments to Canada, since probably all the big companies are in the U.S., thereby creating drug shortages in our own country. Suppose they do good on their threats?

It seems to me that the American government is at odds with the drug companies in the U.S. Why else are they legalizing the bulk import of drugs from Canada? Is this some kind of pressure tactic against the companies to lower their prices domestically?

What do you think?

Canada to control bulk sales of drugs to U.S.
Wed Jun 29, 2005 4:35 PM ET

By David Ljunggren

OTTAWA (Reuters) - Canada will draw up legislation giving it the right to ban the bulk sale of prescription drugs and other medicines to the United States when necessary to protect domestic supplies, Health Minister Ujjal Dosanjh said on Wednesday.

He said Ottawa must be able to block plans by some U.S. states to make bulk purchases of medicines from Canada, where prices are generally lower because of government-imposed limits on what pharmaceutical companies can charge for their drugs.

"(The ban) would come into effect from time to time whenever there is an anticipated shortage of prescription drugs or other needed drugs. It wouldn't be a permanent ban," Dosanjh told reporters after a meeting of cabinet.

"Canada cannot be the drugstore for the United States of America. 280 million people can't expect us to supply drugs to them ... (at) controlled prices within our pricing regime," he said. Canada's population is around 32 million.

Republican John McCain of Arizona and Democrat Debbie Stabenow of Michigan -- two U.S. senators who back legislation making it easier to import less expensive drugs from Canada --said Dosanjh's announcement would not deter them.

They said their initiative would also allow imports from other industrialized countries that have good drug safety regulatory systems.

Dosanjh also said the government would stop the current practice of Canadian Internet pharmacies selling cheap medicines to Americans who do not have an established relationship with a doctor in Canada.

"In light of potential American legislation legalizing the bulk import of Canadian prescription and other medications, our priority must be the health and safety of all Canadians and the strength of our health care system," he said.

Pharmaceutical companies have threatened to halt shipments to Canada if the drugs are transported back to the United States and sold at levels that undercut U.S. prices.

Minnesota Governor Tim Pawlenty said that although people using his state's own prescription drug Web Site only ordered small individual amounts of medicines from Canada, he was concerned Ottawa might impose more restrictions in future.

Dosanjh said Ottawa would also set up a drug monitoring network to identify where Canadian prescription medicines were going and to warn of possible shortages.

The minority Liberal government will formally unveil the draft legislation once Parliament resumes work on Sept. 26.

Dosanjh, who condemns as immoral the practice of Internet pharmacies sending drugs to Americans without then consulting Canadian doctors, conceded the new rules would harm the profitable Web-based drug trade.

"We will ... require the establishment and existence of a doctor-patient relationship before cross-border prescription sales could take place," he said.

David MacKay, a consultant for the Internet pharmacies, said the trade supported a ban on bulk sales since it was clear that Canada could not supply all U.S. needs.

But he expressed dismay over the planned clampdown on sales to U.S. patients without Canadian doctors, saying the pharmacies only sent drugs to Americans after seeing their medical records.

"There has already been a primacy care physician involved in the United States, so this patient has already been examined. How many doctors do you need in this process?"

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