Healthy Skepticism Library item: 17423

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: news

Lueck S, Baglone J
Glaxo Says It Will Retaliate Against Cross-Border Sales
The Wall Street Journal 2003 Jan 13
http://online.wsj.com/article/SB1042245470898700224.html?mod=googlewsj

Full text:

GlaxoSmithKline PLC said it would stop providing pharmaceuticals to Canadian businesses that are shipping them to the U.S., revving up the debate over allowing U.S. consumers to fill their prescriptions in Canada, where many drugs are cheaper.

The British pharmaceutical company sent letters to the Canadian pharmacies and wholesalers it believes are exporting Glaxo products to the U.S., warning them it will cut off their supplies as of Jan. 21 if they sell drugs to U.S. consumers. Many Canadian businesses that have sprung up to fill Americans’ prescriptions could be violating the company’s patent rights and risking lawsuits in the U.S., it said.

“In the interest of patient safety and the maintenance of an adequate product supply in [Canada],” Glaxo is “strongly against the Internet sale and export of its Canadian medications,” the company wrote to a Winnipeg pharmacy.

Rep. Bernard Sanders, a Vermont Independent, called Glaxo’s letters a “direct attack” on Americans’ health, and vowed to reintroduce legislation to ease importation of Canadian products. “Glaxo is trying to slam the door on a safe and affordable source of medicine for an increasing number of Americans,” Mr. Sanders said in a statement that also expressed concern that other pharmaceutical companies will follow suit.

Six months ago, Merck & Co. sent letters to several Canadian Internet pharmacies and wholesalers that are actively shipping prescription drugs to the U.S., warning them of U.S. and Canadian laws against such activities.

But it didn’t threaten to cut off supplies.

A Glaxo spokeswoman said the company wanted to stop the practice “before there were problems” either with patient safety or drug shortages in Canada.

“We are aware of the challenge for some Americans to pay for medicines,” she said, “and we continue to support and lobby for a prescription-drug benefit under Medicare,” the federal program for the elderly and disabled.

In the U.S., only drug manufacturers and their affiliates are permitted to import drugs. But the Food and Drug Administration generally allows individuals to import small amounts for personal use and hasn’t clamped down on Internet shipments. Increasing numbers of Americans, including seniors who lack drug coverage, are seeking bargains across the border or ordering over the Internet. Price controls on drugs in Canada, as well as the weak Canadian dollar, make pharmaceuticals cheaper to buy there.

Canada’s Health Ministry has avoided taking a stand on the Internet pharmacies, which are regulated by individual provinces. Several provincial governments actively support the industry. If a big drug company stops Canadian companies from exporting drugs “that will be a very significant concern,” Manitoba Industry Minister MaryAnn Mihychuk was quoted as saying in the Winnipeg Free Press. Ms. Mihychuk said she would see whether Glaxo might be violating the countries’ free-trade pact.

Ken Kronson, owner of MediMart Pharmacy in Winnipeg, said Glaxo is using “bullying tactics.” Mr. Kronson, whose Internet pharmacy business fills an average of 150 prescriptions a day for U.S. customers, said he will try to buy Glaxo products from other pharmaceutical companies, if necessary.

Tommy Janus, owner of Aptecha.com, based in Stonewall, Manitoba, said Glaxo’s action “is of concern” because the company’s line includes several popular drugs, such as Paxil, an depression drug, and Flonase, an allergy medicine. He hasn’t received a letter yet, but expects one “any day.”

While the U.S. Congress has passed a law easing access to Canadian drugs, it has never been implemented. It requires certification by the Health and Human Services secretary that the system would be safe, but HHS Secretary Tommy Thompson hasn’t granted certification.

The drug industry has fought efforts to legalize wide-scale importation, arguing that it would endanger American consumers. In its letter, Glaxo said patients should get prescription drugs only after face-to-face visits with physicians and that medications may not be properly stored when shipped from Canada.