14 July 2004

House Votes to Allow Prescription Drug Imports From Canada

(Bloomberg) -- The U.S. House of Representatives voted to allow Americans to buy cheaper prescription drugs from countries such as Canada.

The provision was included in a bill, passed on a 389-31 vote, for $83.1 billion in spending in the next fiscal year to fund the Agriculture Department and the Food and Drug Administration. The bill also prevents the FDA from enforcing its ban on imports of prescription drugs from countries with lower prices.

A similar provision was approved by the House last year before being eliminated when the House and Senate versions of the legislation were reconciled. The drug import provision is likely to be eliminated again this year before the final legislation is approved, the Associated Press reported, citing an unidentified Republican staff member.

Americans spent more than $1 billion on medicines from Canada last year, where government controls keep drug prices as much as 77 percent lower than in the U.S. The FDA warns consumers against importing prescription drugs, saying it can't ensure their safety.

Drugmakers such as Eli Lilly & Co. oppose drug imports, citing safety issues and the possible effect on funding for drug development.

Democratic presidential candidate John Kerry, 60, a four- term senator from Massachusetts, said June 15 he supports imports, while President George W. Bush, 58, says restrictions are needed because of concerns about safety.

Demand in Canada

A U.S. law permitting drug imports may cause demand at pharmacies in Canada to surge to $50 billion a year -- two and a half times the size of the country's drug market, David Mackay, 39, the Winnipeg, Manitoba-based executive director of the Canadian International Pharmacy Association, said last month.

The Agriculture spending bill approved today in the House provides $207 million more than Bush requested for the Agriculture Department and the FDA.

The bill provides an increase of $20 million for detection and prevention of mad cow disease, bovine spongiform encephalopathy, or BSE. The administration says it will enable the Department of Agriculture to test 268,000 cattle including 200,000 high-risk animals

The disclosure of the first U.S. case of mad cow disease in December prompted more than 40 nations to ban U.S. beef, threatening exports valued at $3.8 billion last year.

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