19 October 2004

Lilly Cautions Against Effects of Drug Importation

INDIANAPOLIS, Oct. 18 /PRNewswire-FirstCall/ -- Eli Lilly and Company (NYSE: LLY) today cautioned against the ramifications of prescription drug importation and its effect on drug safety, the company, and the economy of the state.

Lilly, the rest of the pharmaceutical industry, the Food and Drug Administration, and federal government officials in both Democrat and Republican administrations have all expressed concern about the implications to patients of the illegal practice of importing prescription drugs from Canada.

Importation is unsafe, harms drug innovation, and will not result in significant savings for consumers. While the current drug supply in Canada is probably as safe as the drug supply in the United States, under the plans being discussed in Indiana, importation means using websites and toll-free numbers to order drugs from Canada by mail. Such practices will attract unseen middlemen outside of Canada whose interests are making money - not helping patients. Importantly, Canadian regulatory agencies have stated that they will not review the safety and efficacy of drugs coming to the United States via Canada.

Spot checks by the U.S. Customs Service and the Food and Drug Administration have already turned up large amounts of counterfeit drugs arriving in this country by mail order, some of which originated in non-industrialized countries. Lilly has also seen instances where patients have ordered its products, some of which had been tampered with or contaminated, via Canadian drug sites. Importation of prescription drugs would make Indiana residents as well as all Americans vulnerable to getting counterfeit pills, expired medicines, or the wrong drugs entirely.

The potential economic impact of drug importation, which is essentially the importation of price controls, is also significant. Drug development is already among the riskiest ventures in business. Under a system of price controls, the risks would easily outweigh the potential rewards, thus the pharmaceutical business model and the resulting innovation would be jeopardized.

Just as price controls have decimated research and development in places such as Europe, Japan and Canada, importation of price controls into the U.S. would seriously threaten future investment by pharmaceutical companies in this country, including in Indiana. This lack of investment would have a negative ripple effect throughout the state, putting at risk both employment and philanthropy. Indiana has also engaged in directed efforts to build the life sciences industry in the state through such initiatives as BioCrossroads, the 21st Century Research & Technology Fund, and the Indiana Future Fund.

All of these initiatives rely on the free market to thrive. Lilly does recognize that paying for prescription drugs is a challenge for many Americans, and has taken steps to address this need. The Lilly Answers program, for example, provides a month's supply of a Lilly retail drug for $12 to seniors with less than $18,000 in annual individual income or $24,000 in annual household income.

More than 15,000 Indiana residents have enrolled in this program to date. In addition, the Lilly Cares program provides free medication, through physicians, to patients who are otherwise unable to afford their medicines. In 2003, Lilly Cares responded to 311,000 requests and provided free product valued at over $210 million. Lilly also was instrumental in developing state-level discount programs such as Hoosier Rx in Indiana. Patient assistance programs such as these are also sponsored by other pharmaceutical companies. PhRMA, a trade association consisting of several pharmaceutical companies, has sponsored a website which details many of these programs.

ELI LILLY PRESS RELEASE

Search Our Prescription Drug Prices

close window