21 Apr 2004
Drug prices in Canada start to rise as a result of US demand shortages medical.
For the first time in many years drug prices in Canada have started to rise, many say this is due to demand from the USA. Some Canadian pharmacists are saying they are spending much more time now sourcing drugs than they did a few years ago (sourcing drugs = getting their supplies).
Shortages range from insulin, drugs for depression to drugs for senile dementia and Parkinson's Disease, say some pharmacists in Canada. In total, there have been reported shortages in hundreds of different items.
Pharmacists say their supplies are tightening as demand from the USA grows.
In Canada there are tough controls on drug prices, that is why for the last ten years prices have remained pretty constant. Now they have started to go up.
The pharmaceutical industry would prefer it if Americans bought their drugs in the USA, where they cost much more, than in Canada. Apart from hitting their profits, the industry says it could have an impact on innovation (R&D on new products). They also say that the FDA cannot vouch for the quality of drugs that come from outside the USA.
US law states that bulk re-imports of drugs into the US is illegal. Pharmaceutical companies have been trying to ease up on supplies to Canadian pharmaceutical wholesalers who they think are supplying drugs to online pharmacies.
Canadian consumers are blaming both the Canadian internet pharmacies for selling abroad and affecting local supplies, and the pharmaceutical industry for trying to limit supplies to the online pharmacies.
Americans buy lots of prescription drugs from Canadian pharmacies. Those who live near enough form part of what is called the 'walk-in' trade. Those who live further away can buy their medication from Canadian online sellers. As drug prices in the USA have been steadily increasing above the inflation rate and the Canadian ones have not, the importation of Canadian drugs into the USA has boomed.
The largest group of clients for Canadian online drug sellers are the elderly of America. Some senior citizens have said that they can save as much as 50% if they buy from Canada, this means a saving of hundreds of dollars each month, which in some cases can be translated into savings of around $3000 per year. If an elderly couple are both on medication the annual savings can be quite sizeable.
Americans spent around $1.1 billion on Canadian drugs last year. This year the figure is expected to be much bigger.
Some hospitals have suffered as pharmacists in Canada flock to enter this cross border business. In areas like Manitoba, some hospitals are short of community pharmacists.
The Civil Society Institute, Canada, attacked pharmaceutical companies for creating artificial shortages as they try to limit supply of drugs to these online pharmacies.
Many consumer groups are asking for a Canada First policy in order to make sure Canadian patients do not go without.
It is said that some pharmacies are resorting to sourcing their drugs from countries that do not have very stringent quality control procedures. American officials say they have come across drugs in the USA that came from Canada that have not been through the Canadian review procedures.
Many American consumers have now got used to buying their medications online. The pharmaceutical industry will have a tough job trying to persuade these people to change their habits.
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