Prescription Drug Reimportation
A short term effort to reduce drug prices

Prescription drugs in the United States have become so unaffordable to the average consumer that states across the country are defying the FDA by launching websites to encourage employees to acquire their prescriptions from Canadian pharmacies. The pharmaceutical industry has launched a counterattack by taking numerous Canadian companies to court, restricting the sale of drugs to Canadian pharmacies, and urging the FDA to prevent the reimportation of pharmaceuticals. This issue has become a political battleground between the FDA, PhRMA, providers, and consumers.

AMSA's Policy:

AMSA believes that Canadian pharmacies, which are subject to similar quality control and chain of custody standards as the United States, have the ability to ensure the safety of prescription drugs. Therefore, AMSA supports the reimportation of drugs from Canada, unless equivalent pharmaceuticals are available at equal or lower prices in the United States and urges the Food and Drug Administration to allow the reimportation of prescription drugs and to provide procedures by which Canadian pharmacies may export drugs to the United States.

The Effect of Reimportation:

Though there is no substitute for domestic access to affordable drugs, it is clear that patients will not likely see lower prices anytime soon in the United States. The Medicare Prescription Drug Benefit, which passed Congress in 2003, does nothing to reduce the price of prescription drugs. The bill in fact prohibits Medicare from negotiating for wholesale prices. Reimportation of prescription drugs from Canada offers patients a short-term solution to finding affordable prescription drugs.

1. Patients can take advantage of drug prices that are 50% cheaper in Canada.
2. The FDA will be required to develop procedures by which Canadian wholesalers and online pharmacies can be liscensed to safely sell drugs to U.S. patients
3. Reimportation will not significantly change drug companies' R&D
4. Pharmaceutical companies who limit sale of drugs to Canada to prevent reimportation will lose favored tax credits and deductions.

Pharmaceutical Companies who have limited drug shipments to Canada:

GlaxoSmithKine, Wyeth, AstraZeneca, Pfizer

 

States attempting to reimport drugs:

Louisiana, North Dakota, Minnesota, Wisconsin, California, Massachusetts, New Hampshire, Maine, Illinois, Maryland

Take Action

The Medicare Prescription Drug legislation passed last year established a Task Force on Drug Importation under the Department of Health and Human Services. This task force is charged with evaluating options and reporting to Congress on the feasablitity of Prescription Drug Reimporation. They are taking public statements until June 1, 2004 from organizations (like AMSA) and individuals (like you!) on reimportation. Please help AMSA support legislation to allow reimportation by submitting your comments.

Go to the Task Force Website to submit your e-comment. You may use AMSA's policy as written above and add your own statements as well.

Continue to follow the Task Force on Drug Importation, which is scheduled to report to Congress by December 1, 2004.

Learn More

Saatsoglou, Paul. Pharmaceutical Reimportation: Magnitude, Trends, and Consumers. IMS Health, February 2004.

In support of Reimportation:

Importation of Prescription Drugs from Canada. Medicare Rights Center. October 10, 2003.

Light, D. W., and J. Lexchin. 2004. Will Lower Drug Prices Jeopardize Drug Research? A Policy Fact Sheet. The American Journal of Bioethics 4(1):W3-W6.

Sager, A; Socolar, D. Do Drug Makers Lose Money on Canadian Imports? Health Reform Program. Data Brief #6, April 15, 2004.

Opposed to Reimportation:

Goldberg, Robert. Reimporting Prescription Drugs. Brief Analysis No.342. National Center for Policy Analysis. September 29, 2000

Owcharenko, Nina. Missing the Point of Medicare Reform: Why Drug Reimportation Is Bad Policy. The Heritage Foundation. WebMemo #304, June 26, 2003.

FDA's Drug Reimportation Website

News Media:

Rowland, C. Study Says Drug Imports May Not Hurt Profits. The Boston Globe, April 15, 2004.

Connolly, C. Pfizer Cuts Supplies to Canadian Drugstores. Washington Post, February 19, 2004; Page A10.