Fwd: Astra Zenaca Trying to Stop Sales in Canada to US

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Astra Zenaca Trying To Stop Sales in Canada To US Customers

 

http://atsh.org/news/astra.html

 

 

April 23, 2003

 

 

A second pharmaceutical giant, AstraZeneca, says it will limit sales of its

products to Canadian pharmacies and wholesalers. It's seen as an attempt to stop

Americans from crossing the border to purchase medications at cheaper prices.

 

Unlike GlaxoSmithKline, which stopped supplying businesses that resold drugs to

Americans in January, AstraZeneca is only saying it will cut some orders. In a

letter to Canadian pharmacies and wholesalers, the company said some orders

would be cut as part of a new " allotment program. "

 

The company attributed the cutbacks to " unexpected sales increases. " Spokeswoman

Rachel Bloom Baglin declined to say that the allotment program was a direct

response to increase Internet sales of Canadian pharmaceutical products to

Americans.

 

However, Bloom Baglin said that if the company found that a pharmacy was

reselling drugs to Americans, its supply allotment would be limited.

 

" Clearly, the pharmaceutical industry, which is one of the greediest in the

states, wants to maintain their profitability, " said Rep. Bernie Sanders, an

independent from Vermont, who introduced legislation to try to derail Glaxo's

action.

 

" This would not be an issue if seniors could purchase the medicines they need at

a price they can afford, " said Edward F. Coyle, Executive Director of the

Alliance for Retired Americans. " The solution is to have a comprehensive

prescription drug benefit under Medicare that would bring prices down. "

 

For years, Americans have increasingly turned to the Internet to import

lower-priced Canadian versions of prescription drugs but the trend has picked up

steam in the last year. Jupiter Research estimates that the Canadian Internet

drug market will double to $1.4 billion this year.

 

Jupiter also estimated that last year's $700 million worth of cross-border sales

translates to a " lost market opportunity " of about $1.3 billion for the drug

companies, or about one percent of the U.S. retail pharmaceutical market.

 

The drugs sold in Canada are chemically the same as their U.S. equivalent. Only

the packaging and pricing are different. Since drugs, like many other products,

are priced lower in Canada than the in wealthier U.S. market, the cross-border

sales have a direct effect on drug companies' bottom lines.

 

The U.S. Food and Drug Administration has looked the other way for years, even

though it's technically illegal to import drugs from foreign countries. The

agency last month issued warning letters to a few U.S. pharmacies but has not

launched a full-scale crackdown. Even its token efforts were hotly criticized in

Congress.

 

Analyst note that FDA action won't be necessary if the drug companies themselves

cut off the flow of drugs.

 

 

 

 

 

 

 

 

 

 

 

 

 

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