[Ip-health] Ottawa Citizen (Oct 14/03): US battle over Canadian drugs intensifies

[Richard Elliott]

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[ Picked text/plain from multipart/alternative ]

>Ottawa Citizen (October 14, 2003)
>U.S. battle over Canadian drugs intensifies: The need to cut treatment cos=
ts
>is running headlong into the need for profit, and the ill, the elderly and
>federal regulators are caught in the middle, Theresa Agovino reports.
>By Theresa Agovino/Associated Press
>
>NEW YORK - Some of the biggest buyers of prescription drugs -- state
>governments -- are trying to get in on the bargain prices north of the bor=
der.
>
>Lured by the chance to cut costs in half, several states hope to join the =
one
>city and legions of Americans who get their medicines from Canada. But fed=
eral
>regulators and the pharmaceutical industry insist it's illegal and unsafe =
and
>are stepping up efforts to stop it.
>
>Clashing interests and an atmosphere of mutual distrust cloud the issue, w=
hich
>pits the states' and many senior citizens' need to cut costs against the d=
rug
>industry's search for profit and federal authorities' efforts to regulate =
a
>complex industry.
>
>Drug purchasers say there's no reason for prices to be as high as they are=
 in
>the United States and that the Food and Drug Administration's stance is
>colored
>by drug companies' generous political donations. State officials, meanwhil=
e,
>say rising prescription drug costs might force them to cut other services.
>
>Manufacturers argue that they need the revenue to develop new treatments. =
To
>try to cut the flow of drugs south, some have begun limiting the amount
>shipped
>to Canada in the first place.
>
>"It feels like we are in an atmosphere of mutually assured destruction,"
>Illinois Governor Rod Blagojevich said.
>
>Drugs are as much as 50-percent cheaper in Canada than in the United State=
s
>because of Canadian government price controls.
>
>The city of Springfield, Massachusetts, has been paying for drugs imported=
 by
>its workers from Canada since July. Illinois, Michigan, Iowa and Minnesota=
 all
>recently announced they are exploring that option because rising prescript=
ion
>drug costs are forcing them to cut other services. Other cities and states=
 are
>said to be considering similar actions; an estimated one million to two
>million
>Americans already buy Canadian drugs via the Internet, storefront
>operations or
>by crossing the border.
>
>Four drug companies have begun limiting supply to Canada to curb importing=
,
>and
>the attorney general of Minnesota is investigating whether GlaxoSmithKline=
,
>the
>first company to do that, is violating antitrust laws.
>
>Mr. Blagojevich predicts that if the industry doesn't lower prices, it wil=
l
>face a backlash that could limit or end the monopoly drug companies enjoy
>
>through patents.
>
>The standoff hit a major crossroads last week in a Tulsa courtroom where t=
he
>Justice Department sought an injunction to close a chain of 85 storefronts
>that
>help seniors purchase drugs from Canada. Its complaint said the chain
>
>is a threat to public health and violates important regulations.
>
>Carl Moore, founder of the chain that operates under the names of RX Depot=
 and
>Rx of Canada, insists drug companies are gouging Americans and that he is
>breaking no laws.
>
>A decision is expected after Oct. 31 and the outcome will have major
>implications for the importation debate, according to former FDA associate
>commissioner Marc Scheineson, now a partner at the Washington law firm Ree=
d
>Smith.
>
>An injunction would likely mute states' attempts to import drugs; a ruling=
 in
>Mr. Moore's favor would clear the way for more imports.
>
>Congress is attempting to create a Medicare drug benefit that would help
>senior
>citizens pay for prescription drugs, but its outcome is unclear and that
>wouldn't help cash-strapped cities and states. The House passed a bill tha=
t
>would allow drugs to be imported from several countries without FDA
>certification, but there is no corresponding bill in the Senate. A
>provision in
>the Senate Medicare bill would allow importation only if the U.S. governme=
nt
>approves the drugs' safety.
>
>FDA associate commissioner William Hubbard said the agency would be willin=
g to
>craft a system where it can have authority over drugs imported to ensure
>safety, but he said there are no good options on the table.
>
>Mr. Hubbard said he understands the frustration over the costs but worries
>that
>Americans are sacrificing safety for savings. He also dismissed the notion
>that
>the agency is beholden to the drug industry.
>
>Last week, the FDA conducted a spot check of 1,153 packages from abroad
>believed to contain prescription drugs and found that 88 per cent containe=
d
>illegal drugs.
>
>Mr. Hubbard conceded the drugs hadn't been tested for safety and that in m=
ost
>instances drugs imported by consumers are illegal regardless of their safe=
ty.
>The remainder of the packages either didn't contain prescription drugs or =
were
>being imported by the manufacturers, which is legal. That did nothing to s=
way
>those who favour importing drugs.
>
>"That report sounds like a bunch of baloney," Mr. Blagojevich said. "If al=
l
>these drugs are so unsafe, why does the FDA let it happen? They are protec=
ting
>the pharmaceutical industry. The pharmaceutical industry is powerful and h=
as
>friends in high places."
>
>He maintains that if there were widespread safety issues with imported dru=
gs,
>there would be a rash of lawsuits seeking damages.
>
>"My trust in the federal government on the drug issue is zero," said Minne=
sota
>Attorney General Mike Hatch. No one, he added, has complained to his offic=
e
>about the quality of the drugs purchased in Canada. "This is just a case o=
f
>political influence."
>
>In the 2002 election cycle, the pharmaceutical industry donated $21.9 mill=
ion
>U.S. to candidates, 80 per cent of them Republicans. The industry is the
>13th-largest contributor to candidates.
>
>Springfield Mayor Michael Albano, who also wants the city's pension fund t=
o
>divest itself of drug stocks, buys his son's insulin from Canada, saving
>almost
>$1,000 a year.
>
>His city spends $18 million on drugs for its employees and retirees -- abo=
ut
>20,000 people in all. That cost is part of the reason he's had to lay off
>firefighters and police this year.
>
>So far, 1,200 people have joined Springfield's voluntary program, which
>exempts
>them from co-payments if they order their drugs from Canada.
>
>Drug industry officials say safety is only one issue.
>
>Jeff Trewhitt, spokesman for the Pharmaceutical Research and Manufacturers=
 of
>America, said free-market pricing in the U.S. makes its drug industry the
>strongest in the world.
>
>But Minnesota spent $68 million last year purchasing drugs for employees a=
nd
>their families -- a 20 per cent increase from 2001 -- and predicts drug
>spending will increase 15 to 20 per cent next year, which is why Governor =
Tim
>Pawlenty is exploring importing drugs from Canada and Europe.
>
>"This system is unsustainable," he said. "It seems odd to me that in this
>crisis situation the federal government and the industry have a white-knuc=
kle
>grip on the status quo."


Richard Elliott
Director, Legal Research & Policy / Directeur, politiques et recherche
juridique
Canadian HIV/AIDS Legal Network / R=E9seau juridique canadien VIH/sida
890 Yonge Street, Suite 700, Toronto, Canada M4W 3P4
Tel : +1 (416) 595-1666                 Fax +1 (416) 595-0094
E-mail: relliott@aidslaw.ca     Web: www.aidslaw.ca

The Canadian HIV/AIDS Legal Network is a partner organisation of the
AIDS Law Project of South Africa, and a non-governmental organization in
Special Consultative Status with the Economic and Social Council of the
United Nations. //
Le R=E9seau juridique canadien VIH/sida est un organisme partenaire  du AID=
S
Law Project
de l'Afrique du Sud et ONG dot=E9 de statut consultatif sp=E9cial aupr=E8s =
du
Conseil =E9conomique
et social des Nations Unies.
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