DRUG COMPANIES GET SAVVY ON REIMPORTATION

When prices are artificially set by government price controls there will always be ways around it

Could this be the beginning of the end of the debate over drug re-importation? Advocates of the practice argue that American consumers, particularly seniors, could benefit from legal re-importation of prescription drugs from abroad, which in some instances are sold at lower prices than in the United States. Opponents contend these lower prices result from price controls and that allowing price controls into one of the world’s few remaining free markets for pharmaceuticals would deter investment in developing new drugs.

To date, there’s been an impasse. Re-importation is technically illegal, though many Americans buy prescription drugs from Canada and other countries. Their savings have made re-importation a rallying issue for some groups, especially senior groups who argue that the lack of an “adequate” drug benefit in Medicare has forced many seniors to look elsewhere for their medications. But are the tides already changing? The Associated Press reports that Americans buying drugs from abroad aren’t saving what they used to. The average price of drugs purchased in Canada rose 23 percent over the past year and a half, compared to an increase of only 8 percent at U.S. pharmacies.

One small part of the problem is the weakening U.S. dollar. Also, it turns out the land of the Maple Leaf is subject to market forces, too. “Higher acquisition costs” are wrecking Canadian pharmacies’ margins, and many have responded by raising prices for foreign buyers or curtailing sales abroad altogether.

While American drug companies cannot determine what their drugs will sell for in Canada, they can control the amount of drugs they ship across the border. Many have chosen to send less to reduce available surplus that could be diverted to U.S. consumers. Fewer surplus drugs in Canada means Internet pharmacies -- major international sellers -- have to purchase drugs from bricks-and-mortar pharmacies, at prices well above wholesale, or re-import drug supplies from other countries, further increasing their costs and exposing U.S. consumers to safety risks. Already, according to recent reports, Canadian health officials have begun to take steps to protect supplies north of the border.....

More here

***************************

For greatest efficiency, lowest cost and maximum choice, ALL hospitals and health insurance schemes should be privately owned and run -- with government-paid vouchers for the very poor and minimal regulation.

Comments? Email me here. If there are no recent posts here, the mirror site may be more up to date. My Home Page is here or here.

***************************