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Big Pharma pulling Canada's chain?

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> The Globe and Mail

>

> Big Pharma pulling Canada's chain?

>

> By ALAN CASSELS

> Thursday, Oct. 30, 2003

>

> It's as if there were a sign outside Tunney's Pasture, Health Canada's

home

> in Ottawa, that reads, " Gone Fishing. " For as pressure mounts from

American

> pharmaceutical manufacturers for Canada to stop selling our cheaper drugs

> to Americans via the Internet, Health Canada is casting for evidence that

> the cross-border trade may be causing drug shortages here at home.

>

> But Health Canada officials might as well stow their rods; they'll only

> find red herrings. The fact is that despite repeated warnings of the

> disaster that will befall Canadians when angry U.S. drug companies

restrict

> their supply of drugs to Canada, no one has produced such evidence. Nor

are

> they likely to.

>

> Canadians can ignore " the sky is falling " pronouncements about shortages

in

> our pharmaceutical supply -- because at the end of the day, money talks.

> And multinational drug companies are still extremely profitable in Canada.

>

> Will Big Pharma companies restrict their supply of billions of dollars

> worth of product to Canada because a tiny portion gets sold back to U.S.

> customers at lower prices? Given that logic, U.S. pharmaceutical

> manufacturers would have to restrict supply to every country that has

> cheaper prices and Internet connections -- which means most of the world.

>

> The main issue here is visibility and precedent. Earlier this year, there

> was news of a leaked U.S. pharmaceutical manufacturers' document which

said

> the industry was earmarking $1-million (U.S.) to " change the Canadian

> health-care system. "

>

> Well, what we're seeing now is that lobbying money at work. As long as

> there are large price discrepancies between our two countries, Canada and

> our policies will naturally be in the crosshairs of the U.S. drug-makers.

> Before we allow our federal health agency out on another fishing

> expedition, let's remember that this latest red herring swims alongside a

> large school of equally fatuous pseudo-warnings issued by federal health

> regulators on both sides of the border.

>

> Because U.S. citizens are paying some of the highest prescription drug

> prices in the world, they naturally turn to the Internet for cheaper

> options. Canada is a relatively trustworthy neighbour, with some good

> recent history of supplying cheaper branded drugs to seniors living along

> the border, so we've become the pharmacy of choice.

>

> And not just for individuals: The governors of Minnesota, Illinois, Iowa

> and Wisconsin have all announced that they want to import cheaper

medicines

> from Canada, thereby saving state budgets and taxpayers millions. Illinois

> Governor Rod Blagojevich estimates that his state could save as much as

> $56.5-million a year on prescription drugs for state employees and

retirees

> by reimporting American-made drugs from countries with cheaper prices.

>

> Ah, ask critics, such as the U.S. Food and Drug Administration, are those

> drugs safe? And who will pay for the research and development of future

> medicines if U.S. pharma loses too much revenue?

>

> More red-herring distractions. The fact is, most American brand-name

drugs,

> when they aren't made in places like New Jersey, come from places like

> Puerto Rico, usually using the same processes, quality standards and

> safeguards as U.S.-based manufacturers. If a drug becomes " unsafe " every

> time it crosses a border, then U.S. citizens should be concerned about

> their entire drug supply.

>

> What about the fear that Canadian-style price-controls could inhibit the

> development of new drugs? Drug-industry supporters call countries that

> control drug prices " parasites. " The industry often says that those paying

> cheaper prices are being subsidized by U.S. research and development,

which

> is in turn funded by high U.S. prices.

>

> This argument might hold some water, were it not for the fact that the

U.S.

> drug industry spends about three times more money marketing its products

> than researching them in the first place. Here's a reverse question:

Should

> Canadians be subsidizing Americans' habit of being bombarded by drug ads?

>

> What Health Canada ought to do is go fishing for evidence that U.S.-style

> drug ads are being unleashed here in our country. They may catch more than

> they bargained for.

>

> Alan Cassels is a drug policy researcher with University of Victoria's

> School of Health Information Science.

>

>

http://www.globeandmail.com/servlet/ArticleNews/TPStory/LAC/20031030/COPHARM

30/Comment/Idx

>

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