February 27, 2009
The Globe and Mail - Report on Business

U.S. President Barack Obama's $3.55-trillion (U.S.) budget included one sentence that could reopen a long simmering debate in Canada - how much access Americans should have to inexpensive medicines from Canada.

For years, the U.S. Food and Drug Administration has made it difficult for Americans to import drugs from other countries, including Canada, citing concerns about safety. But that has not stopped many Internet pharmacies from sprouting up on this side of the border, offering a wide range of prescription and non-prescription drugs, usually at lower prices. Price controls and a lower dollar have kept medicine prices generally lower in Canada compared with the United States.

The Internet cross-border business has been estimated as close to $1-billion (Canadian) and peaked several years ago when the Canadian dollar traded well below 70 cents (U.S). Business has trailed off in recent years as the dollar strengthened and changes were made to some U.S. drug plans for senior citizens.

Yesterday, Mr. Obama signalled in his budget that his administration supports efforts to open up the cross-border medicine trade. One section, titled "Lower Drug Costs and Improves Food and Medical Product Safety," noted that the budget "supports the Food and Drug Administration's new

It's not clear what efforts the FDA is making and officials said no details were available. Bill Hall, a spokesman at the U.S. Department of Health and Human Services, which oversees the FDA, said more information is expected when Mr. Obama releases more details in April.

But even the suggestion of a more open border raised some concern with the Canadian Pharmacists Association.

"We've always had concerns about legislation being passed in the U.S. that would allow for greater importation of drugs into the U.S.," said Dr. Jeff Poston, the association's executive director.

He said American politicians have made several attempts to introduce legislation that would allow for greater importation of drugs, but they failed mainly because of FDA objections.

"We've been concerned about a drug shortage and the impact [cross-border sales] would have on Canadians' access to medication," Dr. Poston added. "Our supply chain of pharmaceuticals in Canada is designed to meet the needs of 30 million Canadians, it is not designed to meet the needs of 300 million U.S. citizens."

But Tim Smith, a spokesman for the Canadian International Pharmacy Association, which represents pharmacies that offer cross-border services, said concerns about a possible drug shortage in Canada are unfounded.

"We are Canadian pharmacists and therefore our commitment is to Canadian constituents," he said.

The association is made up of about 22 pharmacies, mainly in B.C. and Manitoba. "The commitment our members have is to provide a safe avenue to cost-effective drugs," Mr. Smith said. "We'll be watching [the U.S. budget process] with great interest."

Source: http://www.canadapharmacynews.com/2009/03/cross-border-medicine-trade-back-in.html#