NEW YORK (AP) – AstraZeneca Pharmaceuticals LP became the second major drug company to limit sales of its products to Canadian pharmacies and wholesalers as Americans are increasingly purchasing cheaper drugs from across the border.
On April 8, AstraZeneca sent a letter to Canadian pharmacies and wholesalers which said some orders would be cut due to a new allotment program initiated because of unexpected sales increases.
In January, GlaxoSmithKline sent a letter to Canadian pharmacies and wholesalers saying it would stop supplying businesses that resold drugs to Americans, citing concerns about the Canadian drug supply and patient safety.
Although AstraZenca’s letter was not as direct as Glaxo’s, advocates for the elderly, analysts and Canadian wholesalers and pharmacy owners say the object is the same: to choke off the supply of Canadian drugs to Americans before the cross border trade affects pharmaceutical companies’ profitability.
“Clearly, the pharmaceutical industry, which is one of the greediest in the states, wants to maintain their profitability,” said Rep. Bernie Sanders, an independent from Vermont, who introduced legislation to try to derail Glaxo’s action.
Over the past several years, dozens of Internet pharmacies have sprung up across Canada offering Americans the opportunity to shave 50 percent to 70 percent from their drug costs. Canadian drugs are cheaper because of government price controls. The businesses have flourished as drug prices in America skyrocketed.
AstraZeneca spokeswoman Rachel Bloom Baglin said the program is intended to ensure that the increased sales are not affecting Canadian citizens’ access to drugs and that historical purchasing patterns do not determine a business’ allocation.
When asked directly if the program is a response to the Canadian Internet pharmacy trade, Bloom Baglin said it was not a question that could be easily answered. However, she said that if AstraZeneca discovered reselling drugs to Americans was the reason for a business’ increased sales, supply to that company would be limited.
It is illegal to import drugs from Canada but the Food and Drug Administration and U.S. Customs officials have ignored drugs mailed from Canadian Internet pharmacies. More recently, however, store fronts have blossomed that help Americans use the Internet to order drugs from Canada. And the FDA and local health officials have taken actions against the shops, including sending warning letters.
Meanwhile, Canadian internet pharmacy executives maintain it is ridiculous to say they are hurting drug companies profits.
“If people weren’t buying from me, they wouldn’t be buying,” said Dave Robertson, president of crossborderpharmacy.com.
If other drug companies follow Glaxo and AstraZeneca, Robertson fears he may go out of business.
“These drug companies are giants,” Robertson said. “They have way more resources than me.”
AP-ES-04-21-03 2139EDT
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